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 all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $32 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 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, Limited, 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. 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? "One-third supervisory salaries; two-thirds depreciation of special equipment (no r Required: 1. Assuming the company has no alternative use for the facilities that are now bein the financial advantage (disadvantage) of buying 17,000 carburetors from the outsi 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could us segment margin of the new product would be $170,000 per year. Given this new as (disadvantage) of buying 17,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3 , should the outside supplier's offer Complete this question by entering your answers in the tabs below. Should the outside supplier's offer be accepted? Required: 1. Assuming the company has no altemative use for the facilities that are now being used to produce the carburetors, why 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, Limited, could use the freed capacity to launch a new pr segment margin of the new product would be $170,000 per year. Given this new assumption, what would be the financial (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. 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 $170,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside suppllen? Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The compar necessary parts for its engines, including all of the carburetors. An outside supplier has offered to Engines, Limited, for a cost of $32 per unit. To evaluate this offer, Troy Engines, Limited, has gathe to its own cost of producing the carburetor internally: Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produc 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, Limited, could use the freed capar segment margin of the new product would be $170,000 per year. Given this new assumption, what (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. Given the new assumption in requirement 3 , should the outside suppller's offer be accepted
