Exercise 133 (Algo) Moke or Buy Decision [LO13-3] Tray Engines, Lto manufactures a vartety of engines for use in heavy equipment. The compamy has always produced all of the Decessary parts for its engines, including alt of the carburetors. An cutside supplier has offered to sel one type of carburetar to Troy Emintes, Lid for a cost of $30 per une. To evaluate this olfer. Troy Engines. Ltd, has gathered the following information relating to is evit cost of producing the carbureter inteenaly. tOne third sipecvisacy salaries, two-thirds depreciation of speclal equpment ino resale valueh Required: t. Assumang the company has no ahernasive use for the facities that are now being iased to produce the cirburetors, what would be the financial advamtapt fotsadvantagel of buying 12,000 . carturetors from the outside suppiee? 2 Should the outside supplieris otfer be accepted? 3. Suppose that if the carburetors were putchased. Troy Enghes, (td, could use the figed capaicity to lunnch a new product. The sectrrent margin of the new pecduct would be $120,000 per year Given thes new ossumpsion, what would be the financia achasitage 1desadvantegen of buying 12.000 cartaretors from the quts de suppler? 4. Given thee new arsumptice hi requirement 3 shodid the ousside supplier's atter be scceped? Complete this question by entering yoeir answers in that talis hefow. Required: 1. Assuming the company has no altemative use for the facilities that are now being used to produce the carburet the financial advantage (disadvantage) of buying 12,000 carburetors from the outside suppller? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines, Ltd, could use the freed capacity to launch a ne segment margin of the new product would be $120,000 per year. Glven this new assumption, what would be the (disadvantage) of buying 12,000 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. 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, wha he financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Ltd. could use the freed capacity to launch a new produc segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the financial a disadvantage) of buying 12,000 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. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carbur the financial advantage (disadvantage) of buying 12,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a segment margin of the new product would be $120,000 per year. Given this new assumption, what would be the (disadvantage) of buying 12,000 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. Given the new assumption in requirement 3, should the outside supplier's offer be accepted