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Exerclse 13-3(Algo) Sourclng Declsions [LO13-3] Troy Englnes, Limited, manufactures a varlety...

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Accounting

Exerclse 13-3(Algo) Sourclng Declsions [LO13-3]
Troy Englnes, Limited, manufactures a varlety of engines for use In heavy equipment. The company has always produced all of the parts for its englnes, Including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Englnes, Limited, for a cost of $36 per unit. To evaluate this offer, Troy Engines, Limited, summarized the cost of producing the carburetor Internally as follows:
00.54:21
\table[[,Per 20,000 Units Per],[,Unit,Year],[Direct naterials,$17,$40,000
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