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7 Home tml Lesson 7 Homework 2 Ltd, manufactures a variety of engines for use in heavy equipment. The company has always produced all of

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7 Home tml Lesson 7 Homework 2 Ltd, 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, Ltd, for a cost of $34 per unit. To evaluate this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor internally 4.28 points 21,000 Units Unit Per Ye 12 252,000 9* 189,800 $ 49 $1,829,808 Fixed manufacturing overhead, traceable 12 Total cost One-third supervisory salaries, two-thirds depreciation of special equipment (no resale value) ing the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be e) of buying 21,000 carburetors from the outside supplier? 2 Should the outside supplier's offer be accepted? The margin of the new product would be $210,000 per year. Given this new assumption, what would be financial advantage that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The e) of buying 21,000 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. ng the has no alternative use for the facilities that are now being used to produce the carburetors, what ) of buying 21,000 carburetors from the outside supplier? Prey 2 of 7 Next Type here to search

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