Troy Engines Ltd. manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts
for its engines including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines Ltd. for a
cost of $35 per unit. To evaluate this offer Troy Engines Ltd. has gathered the following information relating to its own cost of producing
the carburetor internally:
$42
$630000
What will be the total relevant cost of 15000 units if they are manufactured internally?
What will be the total relevant cost of 15000 units if they are manufactured internally?