Iroy Eng$$nes$,$ Lim$$ted$,$ manutactures a variety of eng$$nes for use in heavy equipment. I he company has always produced all of ti

necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to

Engines, Limited, for a cost of $$30$ per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information $r$

to its own cost of producing the carburetor internally:

Required:

Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what woulc

the total financial impact of buying $13,000$ carburetors from the outside supplier? $($Indicate negative cash flows with a negative si

Should the outside supplier's offer be accepted?

Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product.

segment margin of the new product would be $$130,000$ per year. $($Assume that the carburetor supervisor would still not keep the

Given this new assumption, what would be the total financial impact of buying $13,000$ carburetors from the outside supplier?

Given the new assumption in requirement $3,$ should the outside supplier's offer be accepted?

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