A company 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 the company for a cost of $32 per unit. To evaluate this offer, the compan has gathered the following information relating to its own cost of producing the carburetor internally: 9:21 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 17.000 Unito Per Per Unit Year $14 $ 238,000 8 136,000 3 51,000 3 51,000 6 102,000 $ 34 6 578,000 "One-third supervisory salaries: two-thirds depreciation of special equipment (no resale value). If the carburetors were purchased, the company could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. What would be the financial advantage or disadvantage of buying 17,000 carburetors from the outside supplier? if disadvantage place the number in parentheses (e.g. (50000). Help Save & E A company produces and sells two products-14,000 units of Product A and 6,000 units of Product B. The selling prices are $65 per unit for Product A and $96 per unit for Product B. Product A's direct materials and direct labor costs per unit are $31 and $12, respectively. Product B's direct materials and direct labor costs per unit are $34 and $15, respectively. The company is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional Information is available for the company as a whole and for Products A and B 09 Activity Cost Pool Machining Machine setups Product design Estimated Overhead Activity Measure Cost Machine-hours $ 300,000 Number of setups $ 150,000 Number of 78,000 products Expected Activity 15,000 MH 200 Setups 2 Products Activity Measure Machine-hours Number of setups Number of products Product A 9,000 50 1 Product B 6,000 150 1 Using the ABC system, what is the product margin for Product A? Multiple Choice