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Exercise 13-3 (Algo) Make or Buy Decision [LO13-3] Troy Engines, Lid, 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 supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: "One-third supervisory salaries; 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 17,000 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 new product. The segment margin of the new product would be $170,000 per year, Given this new assumption, what would be the financlal advantage (disadvantage) of buying 17,000 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 facilities that are now being used to produce the carbureters, what would be the financlal odvantage (disadvantage) of buying 17.000 cartaretors from the outside supplier? Exercise 13-3 (Algo) Make or Buy Decision [LO13-3] Troy Engines, Ltd, manufactures a variety of engines for use in heavy equipment. The company has always produced all o 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, Ltd., for a cost of $35 per unit. To evaluste this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor internally? "One-third supervisory salaries; two-thirds deprociation of special equipment (no resale value). Required: 1. Assuming the company has no altornative use for the facatios that are now being used to produce the carburetors, wha would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier? 2. Should the outside supplet's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Lid, could use the freed capacity to launch a new produ The segment margin of the new product would be $170,000 per yeac. Given this new assumption, what would be the financial advantage (disadvantage) of buying 17,000 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 carbureton were purchased, Trov Engines, Lid, could use the freed capocity to launch a new oroduct. The stament margin of the new produc would be $170,000 per rear, Given this new assumpetion, what would be the firancis advantage (disadvantage) of buying 17,000 carburetors from the outude supplien