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020 0101x Question 3 - W1-Chap 13 de X zo meducation.com/ext/map/index.html?con-condexternal browser-Olaunchurahttp%253A%252F%252Fims.mheducation.com%252Fmghmiddleware252F Sived Chap13 5 Troy Engines. Ltd., manufactures a variety of engines for use

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020 0101x Question 3 - W1-Chap 13 de X zo meducation.com/ext/map/index.html?con-condexternal browser-Olaunchurahttp%253A%252F%252Fims.mheducation.com%252Fmghmiddleware252F Sived Chap13 5 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, ud, 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 13:25 Direct materials Direct lobor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 15,000 Per Units Unit Per Year $145 210,000 10 150,000 3 45,000 69 90.000 9 135,000 $ 42 $630,000 1 1 "One third supervisory salaries: two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) or buying 15,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines, Ltd, could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 15.000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3. should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Chap13 Une-thira supervisory salaries, two-thiras depreciation of special equipment no resale values. Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advant (disadvantage) of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? 13:07 Complete this question by entering your answers in the tabs below. 1 Required Required 2 Required Required 4 res Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? KFI Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 es Should the outside supplier's offer be accepted? Yes No Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? (Required 2 Required 4 > hat would segment ma yedt. (disadvantage) of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Given the new assumption in requirement 3, should the outside supplier's offer be accepted? OYes ONO Chap13 Une-thira supervisory salaries, two-thiras depreciation of special equipment no resale values. Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advant (disadvantage) of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? 13:07 Complete this question by entering your answers in the tabs below. 1 Required Required 2 Required Required 4 res Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? KFI Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 es Should the outside supplier's offer be accepted? Yes No Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? (Required 2 Required 4 > hat would segment ma yedt. (disadvantage) of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Given the new assumption in requirement 3, should the outside supplier's offer be accepted? OYes ONO

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