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mion.com/ext/end.html.com .contexternal browser olunchur http:*253A%252F%252Fmis meducation.com/25mghmiddleware252Fhop Direct material Direct labor Variable manufacturing overhead vived sanufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 1000 Per

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mion.com/ext/end.html.com .contexternal browser olunchur http:*253A%252F%252Fmis meducation.com/25mghmiddleware252Fhop Direct material Direct labor Variable manufacturing overhead vived sanufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 1000 Per Unit per Year 5.14 $ 210,000 10 150,000 3 45,000 10,000 9 135,000 542 5630,000 One third supervisory solaries: Iwo-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 15,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? a 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 $150,000 per year Given this new assumption, what would be the financial advantage (disadvantage of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement should the outside suppliers offer be accepted? mion.com/ext/end.html.com .contexternal browser olunchur http:*253A%252F%252Fmis meducation.com/25mghmiddleware252Fhop Direct material Direct labor Variable manufacturing overhead vived sanufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 1000 Per Unit per Year 5.14 $ 210,000 10 150,000 3 45,000 10,000 9 135,000 542 5630,000 One third supervisory solaries: Iwo-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 15,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? a 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 $150,000 per year Given this new assumption, what would be the financial advantage (disadvantage of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement should the outside suppliers offer be accepted

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