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Required: 1. Assuming the company has no alternative use for the facilites that are now being used to produce the carburetors, what would be the

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Required: 1. Assuming the company has no alternative use for the facilites that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 18,000 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 $180,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3 , should the outside supplier's offer be accepted? 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 $33 per unit. To evaluate this offec, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally. Required: 1. Assuming the company has no aliernative use for the facilites that are now being used to produce the carburetors, whin would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplien? 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 $180.000 per year. Given this new assumption, whot would be the financiar advantage (disadvantage) of buying 18,000 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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