9 Troy Engines, 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 $33 per unit. To evaluate this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor internally; Units Per Per Direct naterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 15 270,000 462,000 4 72,000 6 108,000 9162,000 $43 774,000 ook nt One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). rint Required 1 Assuming the company has no alternative use for the fecilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? ences 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 $180,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 18,000 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. Required 3 Required 4 Required 1 | Required 2 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 18,000 carburetors from the outside supplier? Units Per Per Unit Year 15 270,000 9 162, 000 Direct materials Direct labor Variable hanufacturing overhead Fixed manufacturing overhead, traceable Fixed ranufacturing overhead, allocated Total cost 72,000 6 108,000 9162,000 43 $774,000 One-third supervisory sal laries; two-thirds depreciation of special equipment (no resale value) Book Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors would be the financial advantage (disadvantage) of buying 18.000 carburetors from the outside supplier? Hint 2. Should the outside supplier's offer be accepted? 8. 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 advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? would be $180,000 per year. Given this new assumption, what would be the financial Print ferences Complete this question by entering your answers in the tabs below Required 1 qd 2Required 3 Required y has no alternative use for the facilities that are now being used to produce the carburetors, what Assuming the compan would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? Required2 > 18,000 Units Per Year Per Unit Direct materiais Direct labor Variable sanufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost s 15 270,000 9 162,000 72,000 6 108,000 9162,000 $43 $ 774,000 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 18.000 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 $180,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside suppliers offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2| Required 3 Required 4 Should the outside supplier's offer be accepted? OYes ( Required 1 Required 3> 2 t Units per reaf Direct materials Direct labor Variable nanufactaring overhead Fixed manofacturing overhead, traceable Pixed manufacturing overbead, allocated Total cost s 15 $270,000 9 162,000 472,000 6 108,000 9162 000 43 $ 774,000 nts One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). eBook equired: 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 18.000 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 Print margin of the new product would be $180,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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 $180,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? Required 2 Required 4> 2 Units Per Per Un Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Pixed manufacturing overhead, allocated Total cost s 15 $270, 000 9 162, 000 472,000 6 108,000 9162,000 $43 $774,000 oints One-third supervisory salaries: two-thirds depreciation of special equipment (no resale value). 1. Assuming the company has no alternative use for the facilities 2. Should the outside suppliers offer be accepted? eBook that are now being used to produce the carburetors, what Hint e the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? acity to launch a new product. Suppose that if the carburetors were purchased, Troy Engines, Ltd, could use the freed ca The segment margin of the new product would be $180.000 per year Given this new assumption, what advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? Print 4. Given the new assumption in requirement 3, should the outside suppliers offer be accepted? References in the tabs below. Complete this question by entering your answers Required 1 Required 2 Required 3 Required Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Yes ONo