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2 Troy Engines, Ltd., manufactures a varlety of engines for use in heavy equipment. The company has always produced all of the necessary parts for

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2 Troy Engines, Ltd., manufactures a varlety 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 $36 per unto evalae this offer, Troy Engines, Ltd, has gethered the following Information relating to its 4.28 points own cost of producing the carburetor internally: 15,000 Units Per Per Unit Year Direct labor Variable manufacturing overhead Fixed manufacturing overh Fixed manufacturing overhead, allocated Total cost $12 180,000 12 180,000 60,000 6 90,000 9135,000 43 $ 645,000 References One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). 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 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 financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? Check my wo s. Suppose tnat ir tne carouretors were purcnasea, troy engines, Lta., couia use segment margin of the new product would be $150,000 (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? tne treea capacity to launcn a new proauct. ine per year. Given this new assumption, what would be financial advantage 4.28 points Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 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? Print 2 s. Suppose tnat ir tne carouretors were purcnasea, roy Engines, Lto, coura use tne reea capaciry to sauncn a new proaucL ine segment margin of the new product would be $150,000 per year. Given this new assumption, what would be 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? 4.28 points Complete this question by entering your answers in the tabs below ired 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 assurmption, what would be financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? Prev 2 of ENext

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