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Troy Eng.lneg. Ltd manufactures a varlety of englnes for use In heavy egulpment_ The convany of necessary parts for Its engln. Includlng all cf
Troy Eng.lneg. Ltd manufactures a varlety of englnes for use In heavy egulpment_ The convany of necessary parts for Its engln. Includlng all cf the carturetor_ An outslee offereZto Eell one type of to Trcny Erglneg. Ltd.. for cost cf SZ3 per unt To evaluate thlg offer. Troy Erglnes. Ltd.. gathered the followlng Informatlon relatlrg to Its cwn cog of produclrg the carburetor Internalty: s 27e,ee Labor 162, ee 72 .ee ing 1E, ee Eng 162. ee Total -one-thlrd supervlgory two-thlrdg depreclatlon of speclal equlpment (no resale value). Required: 1. ZEE umlng the company no alternatTve for the faclltleg that are now belng used to produce the carburetors. what uld be the financla.l advanzge i'dlgadvantsge) of buylng 18+000 carburetors from the outglde guller? 2 Should outste offer be accepted? 3. Sup;cge that If carburetor; were purchased. Troy EnglneG. Ltd. could use the freed to launch a new prffuct_ The egment of the new product would be 980.000 Zer year. Glven thag new usump%or,. what would be the advantage of buylng 18.000 carburetors from outglde Euopller? 4. Gwen the new assumptlon In Etould the outglde gupp'lerg offer be accepted? Cmplete this bv 2 in tabs 3 4 tl-Et if tl- Troy Ltd., cold frS to THE this of iJYing 18,000 fnn tl-E s (180,002)
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