Exercise 11-3 (Algo) Make or Buy Decision [LO11-3] Troy Engines, Limated, manutactures 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, Limted. for a cost of $36 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: 1. Assuming the company has no ahemative use for the facilities that are now being used to produce the carburetors, what would be the financial advantege (disadvantage) of buying 20,000 carburetors from the outside suppller? 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 Gegment margin of the new product would be $200.000 per year Given this new agsumption, what would be the fintancial advantage (disadvartage) of buying 20,000 carburefors from the outside supplier? 4. Given the new ossumption in requirement 3, should the outside supplier's offer be accepted? Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the finandal advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? Complete this question by entering your answers in the tabs below. Should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. 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? 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