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7. 10.00 points Troy Engines, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts
7. 10.00 points Troy Engines, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including of the carburetors. An outside supplier has offered to be one type of carburetor to Troy Engines. Lid for a cost of $23 per unit. To evaluate this other, Troy Engines, Lid., has gathered the following information relating to own cost of producing the carburetorimally Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated 15.300 Por Unit Pere $ $ $ 76.500 7 107.100 3 45.000 - 137.700 9 137.700 $ 33 $504,900 Total cost 40% supervisory series: 60% depreciation of special equipment no resale value) Required: 1a Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to 2 decimais.) Buy Total relevant cool (15,300 units) 16. Should the outside suppler's offer be accepted? Accept Reject 2a. Suppose that if the carburetors were purchased, Troy Engines, Lid could use the freed capacity to launch a new product. The segment margin of the new product would be $4,320 per year. Compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to 2 decimals) Total relevant cost (15.300) 2. Should Troy Engines, Lad accept the offer to buy the carburetors for $23 per unit? Reject Accept Hints References eBook & Resources Hint1 Check my work
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