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19,606 Per Units Unit per Year Direct materials $ 16 $ 304,666 Direct labor 10 190,698 Variable manufacturing overhead 2 33,968 Fixed manufacturing overhead, traceable

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19,606 Per Units Unit per Year Direct materials $ 16 $ 304,666 Direct labor 10 190,698 Variable manufacturing overhead 2 33,968 Fixed manufacturing overhead, traceable 9* 1?1,666 Fixed manufacturing overhead, allocated 12 223,668 Total cost $ 49 $- 931.1999 l *One-third supervisory salaries; two-thirds depreciation ofspecial 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} of buying 19,000 carburetors from the outside supplier? 2- Should the outside supplier's offer be accepted? 3. Suppose that ifthe 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 $190,000 per year. Given this new assumption, what would be the financial advantage {disadvantage} of buying 19,000 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 labs below. Required 4 I Requiredl H Required2 Required3 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the nancial advantage (disadvantage) of buying 19,000 carburetors from the outside supplier? Required 2 )

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