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25 2 Tray Engines, Ltd, manufactures a vanety of engines for use in heavy equipment. The company has always produced all of the necessary parts
25 2 Tray Engines, Ltd, manufactures a vanety 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 suppler has offered to sell one type of carburetor to Troy Engines, Ltd, for a cost of $30 per unit to evaluate thes offer. Troy Engines, Ltd, tas gathered the following information relating to its own cost of producing the carburetor intermally Per E PIN fal 4 One thard supervisory salanes, two-thirds depreciation of special equipment in resale values Required 1 Assuming the company has no alterative use for the factities that are now being used to produce the carburetors, what would be the Snancial advantage disadvantage) of buying 19.000 carburetors from the outside supple 2. Should the outude suppoer's offer be accepted? 3. Suppose that the carburetors were purchased. Troy Engines, Ltd, could use the bed capacity to launch a new product. The segment margin of the new product would be $90,000 per year. Given this new assumption, what would be the financal advantage (dsadvantage) of buying 10.000 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. Assuming the company has ne alternative use for the facilities that are now being aned to produce the carburetors, what would be the financial advantage (disadvantage) of buying 19,000 carburetors from the outside supplier? Required 2>
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