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Troy Engines, Lid. manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessaty parts for its

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Troy Engines, Lid. manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessaty parts for its engines, including all of the carburetors An outside supplier has offered to sell one type of carburetot to Troy Engines, Ltd., for a cost of 534 per unit. To evaluate this offet Tray Engines, Ltd. has gathered the following information relating to its own cost of producing the carburetor internally Per Direct natorials Direct labor Variable actor de cerned Find manufacturint overhead, traceae Fixed manufacturing overhead, allocated Total cost 1,000 Units Unit $ 165,000 190,000 38.000 121,000 12 228.000 549 5931,000 *One third supervisory salatles: 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 disadvantages of buying 19.000 carburetors from the outside supplier? 2. Should the outside suppliers offer be accepted? 1. Suppose that the carburetors were purchased, Troy Engines lid could use the freed capacity to launch a new product. The segment marcil of the new product would be $190,000 por you. Given this new assumption, what would be the financial advantage: (disadvantage of buying 19000 carburetors from the outside supplier 4. Given the new assumption in requirements should the outside supplier offer be accepted? Complete this question by entering your answers in the tabs below. Required Recunod quid Required 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 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required: Required Records Required 4 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? Required 2 >

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