{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-28T21:14:58-04:00", "answer_date": "2024-05-28 21:14:58", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1859636", "url": "\/study-help\/questions\/troy-engines-limited-manufactures-a-variety-of-engines-for-use-1859636", "question_creation_date_js": "2024-05-28T21:14:58-04:00", "question_creation_date": "May 28, 2024 09:14 PM", "meta_title": "[Solved] Troy Engines, Limited, manufactures a var | SolutionInn", "meta_description": "Answer of - Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced a | SolutionInn", "meta_keywords": "troy,engines,limited,manufactures,variety,heavy,equipment,company,produced,necessary,parts,carburetors", "question_title_h1": " Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for", "question_title": " Troy Engines, Limited, manufactures a variety of engines for use in", "question_title_for_js_snippet": "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 $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 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per Unit $ 14 10 3 6 15,000 Units per Year $ 210,000 150,000 45,000 90,000 9 135,000 $ 42 $ 630,000 One third supervisory salaries 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 (disadvantage) of buying 15,000 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 $150,000 per year Given this new assumption, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier 4 Given the new assumption in requirement 3, should the outside supplier's offer be accepted ", "question_description": "\"image", "transcribed_text": "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 $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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per Unit $ 14 10 3 6* 15,000 Units per Year $ 210,000 150,000 45,000 90,000 9 135,000 $ 42 $ 630,000 *One-third supervisory salaries; 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 (disadvantage) of buying 15,000 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 $150,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted?", "related_book": { "title": "Managerial Accounting", "isbn": "1259307417, 978-1260153132, 1260153134, 978-1259307416", "edition": "16th edition", "authors": "Ray Garrison, Eric Noreen, Peter Brewer", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1290.jpg", "uri": "\/textbooks\/managerial-accounting-16th-edition-1290", "see_more_uri": "\/textbooks\/business-business-communication-20" }, "free_related_book": { "isbn": "B0C4MP2MCL", "uri": "\/textbooks\/eastern-coral-snake-pet-snake-book-their-care-behavior-feeding-origin-temperament-breeding-methods-health-tips-and-much-more-1st-edition-979-8394141317-231798", "name": "Eastern Coral Snake Pet Snake Book Their Care Behavior Feeding Origin Temperament Breeding Methods Health Tips And Much More", "edition": "1st Edition" }, "question_posted": "2024-05-28 21:14:58", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/products-are-1-lip-gloss-or-lipstick-with-spf-2-658025", "description": "Products are 1. 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