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necessaty parts ior its erigines, inciucing an or ine cardureiars. An cuishe suppier ras onered to seir one type or carouretor wo troy Engines, Limited,

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necessaty parts ior its erigines, inciucing an or ine cardureiars. An cuishe suppier ras onered to seir one type or carouretor wo troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internalily: 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 16,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to lounch a new product. The segment margin of the new product would be $160,000 per year, Given this new assumption, what would be the financial advantage (disadvantage) of buying 16,000 carburetors from the outside suppser? 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 carburetors were purchased, Troy Engines, Limiked, could use the freed capacity to launch a new product. The segment margin of the new product would be $160,000 per year Given this new sssumption, what would be the financal advantage (disadvantage) of buying 16,000 carburctors from the outside supplier

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