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Troy Engines, Limited, manufactures a variefy of engines for use in heavy equipment. The company has always produced ail of the necessary parts for its

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Troy Engines, Limited, manufactures a variefy of engines for use in heavy equipment. The company has always produced ail 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 $37 per unit. To evaluate this offer, Troy Engines, Lmiled, has gathered the following intormaition retating to its own cost of producing the carburetor intemally. 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 23,000 carburetors from the outside suppler? 2 Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines, Limted, could use the freed capacity to taunch a new product. The segment margin of the new product would be $230,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 23.000 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. 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 23,000 carburetors from the outside suppller? Complete this question by entering your answers in the tabs below. Should the outside supplier's offer be accepted? Yes 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 $230,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? Given the new assumption in requirement 3, should the outside supplier's offer be accepted

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