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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 all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $36 per unit. To evaluate this olfer, 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 aiternative use for the facilities that are now being used to produce the carburetors, what would be the financial odvantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 2. Should the outs de supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines. Limited, could use the freed capocity to launch a new product. The segment margin of the new product would be $150,000 per year, Given this new assumption, what would be the financiaf advantage (disadvantage) of tuying 15,000 carbucetors from the outside supplier? 4. Given the new assumption in requitement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below

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