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Bob your best bet is going to be replace furnace. You should be able to replace with a comparable furnace for between 1500 and 1800 with 20 year warranty on new heat exchanger and 10 years all other parts. Are you set on going with Carrier if you replace?
Bob I would expect they will pay close to the cost of the furnace.The cost for the heat exchanger replacement will be close to cost of replacing furnace due to labor involved.Not sure if you have a deductible or not.
I prefer the Rheem/Ruud line over just about everything on market.
I have found that usually when costs to replace vs cost to repair exceed about 60%, they would rather replace as they know they will not have to cover it again for at least 20 years since manufacturer warranty wlil cover any problems.
Sounds like AHS is trying to rip you off. American Standard , built by Trane does not advertise prices online but to give you an idea of the wholesale cost here is a link to one on Ebay.
This is about what the furnace sells for wholesale, so basically they are not giving you crap.
Feel free to share this conversation with AHS.
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Tell them give you the 1900 and let you have it installed.