KH CH132 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 $34 per unit. To evaluate this offer, Troy Engines, Ltd has gathered the following information relating to its own cost of producing the carburetor internally Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead. traceable Fixed manufacturing overhead, allocated Total cost 19,000 Per Units Unit Per Year $ 16 5 304,000 1e 190.000 2 38.000 9 171,000 12 228,000 $ 49 $931,000 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 19,000 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 $190,000 per year. Given this new assumption, what would be the financial advantage (disadvantage of buying 19.000 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. Required Required 2 Required 3 Required 4 Suppose that the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The Prew 5 of 5 Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment necessary parts for its engines, including all of the carburetors. An outside supplie Engines, Ltd., for a cost of $34 per unit. To evaluate this offer, Troy Engines, Ltd., h own cost of producing the carburetor internally: 19,000 Per Units Unit Per Yat $ 16 $ 30490 190,000 2 38,000 9* 171,000 12 228,000 $ 49 $ 931,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 10 "One-third supervisory salaries; two-thirds depreciation of special equipment (no Required: 1. Assuming the company has no alternative use for the facilities that are now beir the financial advantage (disadvantage) of buying 19.000 carburetors from the outs 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines, Ltd., could use ti segment margin of the new product would be $190.000 per year Given this new Required: 1. Assuming the company has no alternative use for the facilities that are now being used o produce the carburetor the financial advantage (disadvantage) of buying 19,000 carburetors from the outside suplier? 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 segment margin of the new product would be $190,000 per year . Given this new assumption, what would be the fin (disadvantage) of buying 19,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Book Complete this question by entering your answers in the tabs below. rences 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 19,000 carburetors from the outside supplier? Financial (disadvantage) $ 0 Required 2 > Play 5015 Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what the financial advantage (disadvantage) of buying 19,000 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 segment margin of the new product would be $190,000 per year. Given this new assumption, what would be the financial ad (disadvantage) of buying 19,000 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. Required 1 Required 2 Required 3 Required 4 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 $190,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 19,000 carburetors from the outside supplier? Financial advantage Prev 5 of 5 Next