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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

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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 alf of the carburetors. An outside supplier has offered to seil one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines. Limited. has gathered the following information relating. to its own cost of producing the carburetor internally Required: 1. Assuming the compary has no alternative use for the facities that are now being used to produce the caiburefors. What woukd be the tinancial advantage (disadvantage) of buying 14,000 carburetors from the outside suppiter? 2 Should the outside supplierf offer be accepted? 3. Suppose that is the carburetors Were purchased, roy Engenes, Lmited could use the freed capucity to launch anew product The segment margin of the hew procuct wo bid be $140.000 per yeac Given this new assumption. what would be the financat advantage (disadvantage) of buying t4.000 carburetors thom the outside suppiet? 4 Given the new assumption in requiement? thould the outside uppliers offer be accepted

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