really confused on these!
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 $39 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: 'esale 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 total financial impact of buying 21,000 carburetors from the outside supplier? (Indicate negative cash flows with a negative sign.) 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 $210,000 per year. (Assume that the carburetor supervisor would still not keep their job.) Given this new assumption, what would be the total financial impact of buying 21,000 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. 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 $210,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 21,000 carburetors from the outside supplier? Bed \& Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution forma income statement follows: A study indicates that $371,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens. Department will result in a 16% decrease in the sales of the Hardware Department. Required: What is the total financial impact of discontinuing the Linens Department? (See below if you need a hint.)