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help 2 Per Unit $ 14 12 2 9. 12 $ 49 1 points ebook 21,000 Units Per Year Direct materials $ 294,000 Direct labor
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2 Per Unit $ 14 12 2 9. 12 $ 49 1 points ebook 21,000 Units Per Year Direct materials $ 294,000 Direct labor 252,000 Variable manufacturing overhead 42,000 Fixed manufacturing overhead, traceable 189,000 Fixed manufacturing overhead, allocated 252.000 Total cost $ 1,029,000 "One-third supervisory solaries; two-thirds depreciation of special equipment (no resale value) Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 21000 carburetors from the outside supplier? 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 segment margin of the new product would be $210,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 21000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Hist References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 21,000 carburetors from the outside supplier? Financial (disadvantage) 2 Per Unit $ 14 12 2 9. 12 $ 49 1 points ebook 21,000 Units Per Year Direct materials $ 294,000 Direct labor 252,000 Variable manufacturing overhead 42,000 Fixed manufacturing overhead, traceable 189,000 Fixed manufacturing overhead, allocated 252.000 Total cost $ 1,029,000 "One-third supervisory solaries; two-thirds depreciation of special equipment (no resale value) Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 21000 carburetors from the outside supplier? 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 segment margin of the new product would be $210,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 21000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Hist References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 21,000 carburetors from the outside supplier? Financial (disadvantage) Step by Step Solution
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