Per 13 2 Troy Engines, Ltd., 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 16,00 Units Unit per Year Direct materials $ 13 5 200,000 Direct labor 200,000 Variable manufacturing overhead 32,000 Mixed manufacturing overhead, traceable 9 144,000 Fixed manufacturing overhead, allocated 12 192.000 Total cost 3.49 $ 784,000 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 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, Ltd., 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 assumption, what would be the financial advantage (disadvantage of buying 16,000 carburetors from the outside supplier? 4. Given the new assumption in requirement should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required Tequired 2 Required 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) or buying 16,000 carburetors from the outside supplier Required 2 > Troy Engines, Ltd., 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 pet unit. To evaluate this offer, Troy Engines, Ltd. has gathered the following information relating to 115 own cost of producing the carburetor intemally Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 16.000 Per Units Unit per Year 5 13 5208,000 13 208.000 2 32.000 90 144,000 12 192.000 $ 495 784,000 One-third supervisory salanes: 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 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 Ltd. 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 assumption, what would be the financial advantage (disadvantage) of buying 16,000 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. Requirt 2 Required Required 4 Required Should the outside supplier's offer be accepted? Yes Troy Engines, Ltd., 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead. allocated Total cost 16,000 Per Units Unit pe Year $ 135 208,000 13 200.000 2 32,000 9 144,000 12 192,000 5.495 784,000 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 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. Ltd. 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 assumption what would be the financial advantage (disadvantage) of buying 16,000 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 Reduired 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 $100,000 per year. Given this new ansumption, what would be the financiar advantage (disadvantage of buying 10,000 carburetors from the outside supplier Troy Engines, Ltd., 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 Direct materials Direct labor Variable sanufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 16,000 Per Units unit per Year $.13 5 205,000 13 200,000 2 32,000 9 144,000 12 192,000 $.49 $ 784,000 *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 16,000 carburetors from the outside supplier? 3. Suppose that if the carburetors were purchased, Troy Engines, Ltd. could use the freed capacity to taunch 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 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 Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Yes NO