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Check my werk Exercise 11-3 (Algo) Make or Buy Decision (L011-3) Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The

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Check my werk Exercise 11-3 (Algo) Make or Buy Decision (L011-3) Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced at 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 $35 per unit. To evaluate this offer. Troy Engines Limited, has gathered the following information relating to its own cost of producing the carburator internally Pet 23.000 e Year Direct material $11 130,000 Direct labor 174,000 Variable manufacturing overhead . 66,000 Fixed rating over treble 66.000 Fixed manufacture overhead, allocated 6 132.000 Total cost 2000 One-third supervisory sales; two thirds depreciation of special equipment (no resale Value Required: 1. Assuming the company has no sentive use for the facilities that are now being used to produce the carburetons, what would be the financial advantage disadvantage of buying 22.000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3 ppose that 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 $220,000 per year. Given this new assumption what would be the financial advantage (disadvantage of buying 22000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3. should the outside supplier's offer be accepted Since AB doc

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