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Exercise 11-3 (Algo) Make or Buy Decision [LO11-3] Troy Engines. Limited, manufactures a variety of engines for use in heavy equipment. The company has always

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Exercise 11-3 (Algo) Make or Buy Decision [LO11-3] 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 suppier 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 carburetor internally: Required: the financial advantage (disadvantage) of buying 16,000 carburetors from the outside supplien? 2. Shouid the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines, Limited, could use the freed capacity to lounch a new product. The segment margin of the new product would be $160,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 16,000 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. Assuming the company has no alternative use for the faclities that are now being used to produce the carburetors, what Assuming the company has no alt (disadvantage) of buving 16,000 carburetors from the outside supplier? would be the financial advantage Complete this question by entering your answers in the tabs below. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what Complete this question by entering your answers in the tabs below. Should the outside supplier's offer be accepted? pose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. segment margin of the new product would be $160,000 per year. Given this new assumption, what would be the financial rantage (disadvantage) of buying 16,000 carburetors from the outside supplier? Complete this question by entering your answers in the tabs below. Given the new assumption in requirement 3 , should the outside supplier's offer be accepted

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