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Please help! I have a similar question to this coming up in a test and I am not sure how to answer it. Can you

Please help! I have a similar question to this coming up in a test and I am not sure how to answer it. Can you send me a detailed, step by step response?

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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 ofcarburetor to Troy Engines. Ltd.. for a cost of $36 per unit. To evaluate this offer. Troy Engines. Ltd.. has gathered the following information relating to its own cost of producing the carburetor internally: 2 0 .. 0 0 0 Par Unite Unit. Per Year Direct materials 5 1'! $ 340,000 Direct: labor 10 200,000 Variable manufacturing overhead 2 40 , 000 Fixed manufacturing overhead , traceable 9* 130 , 000 Fixed manufacturing overhead , allocated 12 240 , 000 Total coat. 5 50 $1,000,000 l "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 nowI being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20.000 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 $200,000 per year. Given this new assumption. what would be the nancial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted

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