Saved Help Save & Ext Sut Check my wol 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 $32 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 snufacturing overhead, traceable Fixed sanufacturing overhead, allocated Total cost 17.ee Units Unit per Year $ 14 $238.ee 1.36.000 51.000 51. $ 38 5 578,000 "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 17,000 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 $170.000 per year. Given this new assumption, what would be the financial advantage disadvantages of buying 17000 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 Rebuired] Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors would be the financial advantage disadvantage of buying 17.000 carburator from the outside suppliers ype here to search Huy eliyles, Llu., has duiered 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 Per Unit $ 14 8 3 3* 17,000 Units per Year $ 238, eee 136,000 51,00 51, eee 1e2,eee $ 578, eee $ 34 *One-third supervisory salarles, two-thirds depreciation of special equipment (no resale value). Requlred: 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 17.000 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 $170.000 per year. Given this new assumption, what would be the financial advantage (disadvantage of buying 17000 carburetors from the outside suppiter? 4. Given the new assumption in requirement 3. should the outside suppliers offer be accepted? Complete this question by entering your answers in the tabs below. Required Reduced Required Required Assuming the company has no alternative for the facilities that are now being used to produce the carburetors would be the incia advantage disadvantago uying carburetorn the outside suppe Troy Engines, Ltd., has gathered the following Information relating to its own cost of producing the carbure Internally Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 17, eee PerUnits Unit per Year $ 14 $ 238, eee 136, eee 51, eee 51, eee 102, eee $ 34 5 578,888 *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 17,000 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 $170,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 17.000 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 1 Required 2 Required 3 Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier? Required 2 >