Per Unit $ 16 10 2 Troy Engines, Limited, 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, Limited, for a cost of $34 per unit. To evaluate this offer, Troy Engines Limited, has gathered the following information relating to its own cost of producing the carburetor Internally 19,000 Unit por Year Direct materials $ 304,000 Direct labor 190,000 Variable manufacturing over hond 38,000 Tixed manufacturing overhand, traceable 171,000 Tixed manufacturing overhead, allocated 228,000 Total cost $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, Limited, could use the freed capacity to lounch 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? 12 549 Complete this question by entering your answers in the tabs below. Required: Ragyred 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) of buying 19,000 carburetors from the outside supplier? 9. Troy Engines, Limited, 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, Limited, for a cost of $34 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor Internally: Per 19,000 tite Unit pee Year Direct materials $16 $ 300,000 Direct labor 10 190,000 Variable manuturing overhead 2 30,000 Yixed manufacturing overhead, traceable 371,000 Pixed manufacturing overhead, allocated 12 220,000 Total cost 591.000 *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, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $190,000 per your 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? ances Complete this question by entering your answers in the tabs below. Required: Required 2 Keduired Required Suppose that if the carburetors were purchased, Troy Engines, Limited, 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 assumption, what would be the financiar advantage (disadvantage of buying 19,000 carburetors from the outside supplier