2 Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the parts for its engines, including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Engines, Limited, for at cost of $35 per unit. To evaluate this offer. Troy Engines, Limited, summarized the cost of producing the carburetor internally as follows Shipped Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Book HVE Per Unit $ 15 22,000 Units Per Year $330,000 B 3 176,000 66,000 3 66,000 6 132,000 $35 $770,000 "One-third supervisory salanes, two-thirds depreciation of special equipment (no resale value) Required 1 If the company has no alternative use for the facilities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 22,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product with a segment margin of $220,000 per year Given this new assumption, what would be the financial advantage (disadvantage) of buying 22.000 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 If the company has no alternative use for the facilities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 22,000 carburetors from the outside supplier? Financial advantage Financial (disadvantage) Required 2 > 2 Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the parts for its engines, including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines Limited, summarized the cost of producing the carburetor internally as follows Desped Book Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Pised manufacturing overhead, allocated Total cost Per 22,000 Units Per Unit Year $ 35 5 330,000 176,009 3 66,000 3+ 66,000 6 132,000 $ 35 $770,000 "One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value) Required: 1 If the company has no alternative use for the factities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 22,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product with a segment margin of $220.000 per year Given this new assumption, what would be the financial advantage (disadvantage) of buying 22,000 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 Should the outside supplier's offer be accepted? Yes No 2 Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the parts for its engines, including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines Limited, summarized the cost of producing the carburetor internally as follows Sapped Het Direct materials Direct labor Variable manufacturing overhead, Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per Unit $ 15 22,000 Units Per Year $330,000 8 176,000 1 3 66,000 3 66,000 137,000 $35 $770,000 "One-third supervisory salanes, two-thirds depreciation of special equipment (no resale value) Required: 1 if the company has no alternative use for the facities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 22.000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3 Suppose if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product with a segment margin of $220,000 per year Given this new assumption, what would be the financial advantage (disadvantage) of buying 22,000 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 Suppose if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product with a segment margin of $220,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 22,000 carburetors from the outside supplier? Financial advantage Financial (disadvantage) 2 Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the parts for its engines, including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit to evaluate this offer, Troy Engines Limited, summarized the cost of producing the carburetor internally as follows Supped Direct materials Direct labor Variable manufacturing overhead Fixed sanufacturing overhead, traceable Plaed manufacturing overhead, allocated Book Total cost Fer 22,000 Units Fer Unit $15 Year $330,000 B 176,000 ' 66,000 66,000 6 132,000 5:35 $770,000 "One third supervisory salaries; two-thirds depreciation of special equipment (no resale value) Required: 1. If the company has no alternative use for the facilities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 22,000 carburetors from the outside suppiter? 2. Should the outside supplier's offer be accepted? 3. Suppose if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product with a segment margin of $220,000 per year Given this new assumption, what would be the financial advantage (disadvantage) of buying 22.000 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 2 Required Required Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Yes Nu