3 25 S020123 9. 12 Troy Engines Limited, 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, United, for a cost of $40 per unit . To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor Internally. 15,000 Units Per Unit Direct matris $15 $225.000 Direct labor 11 165.000 Wariable manufacturing chest > 30,000 Trufacturing overhead, thiable 135,000 Fanufacturing overhead, allocated 18.000 Total cost 51735.000 One third supervisor 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 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 Limited, could use the freed capachy 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? 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 Hiired 1 Hered 2 Deared Auming the company has noternative for the facilities that are now being used to produce the carburetor what would be the financial advantage (sadvantage of buying 15.000 carburetors from the outside wppler? 3 necessary parts for its engines, Inchiding all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited for a cost of $40 per unit. To evaluate this offer, Troy Engines, Umited, has gathered the following information relating to its own cost of producing the carburetor internally 25 DON 02.012 15,000 units Permit pere Direct materiali $15 $ 25,000 Oirect later 11 195.000 Variable manufacturing wwerhead 2 30,000 anufacturing a traceable ye 135.00 Fived manufacturing overhead, allocated 12 100.00 Total cost S2000 *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 of buying 15.000 carburetors from the outside Supplier? 2. Should the outside supplier's offer be accepted? Suppose that if the carburetors were purchased. Troy Engines Limited 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 should the outside supplier's offer be accepted Complete this question by entering your answers in the tabs below. Required Red Required Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch new product The segment margin of the new product would be $150,000 per year Given this new wsumption, what would be the linancial advantage (disadvantage of buying 15.000 carburetors from the outside supplier ME G