Troy Engines, Lid., 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 $34 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 matatals Direct labor Varihi manfatting whead Tixed manufacturing overbead, traceable Fixed manufacturing overhand, allocated 11,000 Onits per Year $ 16 5 304,000 10. 190.000 2 35,000 + 371,000 12 220,000 34 331,000 Total coat One-third supervisor salaries; two-thirds depreciation of special equipment to retaler 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, Ltd, could use the freed capacity to launch 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 should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. sty RA MacBook Air 20 ! 8. # 3 $ 4 % 5 & 7 6 2 8 9 0 Q W E 70 P T Y U O P A A S D TI G H J K L V N C B B N M M V oll 42 command command opt option 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, Ltd., could use the freed capacity to launch 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? Complete this question by entering your answers in the tabs below. Required 1 Requined Required 3 Required 4 Required 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 Financial (disadvantage) Required 2 > JB etv s AW 17 LU heducation.com/ext/map/index.html?_con conexternal_browser&launchUrl https%253A%252F%252Fims.mheducation.com%22mmu. Help Save & EX Saver Homework Chec 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, Ltd., could use the freed capacity to launch 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? Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 2 Required 1 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 $190,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 19,000 carburetors from the outside supplier? Financial advantage Required 4 >
