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can someone help me with this problem please? thank you!! Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company
can someone help me with this problem please? thank you!!
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, Limited, for a cost of $36 per unit. To evaluate this offer. Troy Engines, Limited, has gathered the following information relatir to its own cost of producing the carburetor internally Per 20,000 Units Per Unit Year Direct materials $ 13 $ 260,000 Direct Labor 11 220,000 Variable manufacturing overhead 4 50,000 Hned manufacturing overhead, traceable 6 120,00 Fixed wanufacturing overhead, allocated 9 180.000 Total cost 5.43 $ 860.ee "One third supervisory salaries, two-thirds depreciation of special equipment (no resale value) Required: Assuming the company has no alternative use for the facilities that are now being used to produce the carburefors, what would be the financial advantage Idisadvantage) of buying 20,000 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 capacity to launch a new product. The segment margin of the new product would be $200,000 per year. Given this new assumption, what would be the financial advantage (disadvantage of buying 20.000 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 Labs below. Required 1 Required 2 Required Required 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 (disadvantages of buying 20,000 carburetors from the outside supplier? hancial advantagal Required 2 > Step by Step Solution
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