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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 catburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $36 per unt, To evaluate this atfer, Troy Engines, Limitec, has gathered the foliowing information relating to ts own cost of producing the carburetor internally: tOne third superviory salaries, two thirds depreciation of special equipment (no resale valuek Required: 1. Assuming the compary has no alternative use for the facitites that are now being used to produce the caburetors, what would be the financial advantnge (disadvantage) of buying 15.000 carburetors from the outside suppten? 2. Stauld the outside suppliers ofler be accepted 3. Suppose that it the carburotors were purehased. Troy Engines. Limated, could use the freed capacity to launch a new product. The. segment margin of the new product would be $150,000 per yeat Geven this new assumption. what would be the financial advantage (disadvantage) of buying 15,000 caburetors from the outside supplier? 4. Given the new assumpion in requiement 3 ; should the cutside suppler's offer be accepted? ie minanciai aavantage (aisadvantage) or buying is,uUu carburetors Irom the outside supplier: hould the outside supplier's offer be accepted? iuppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new pi egment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financ advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 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 15,000 carburetors from the outside supplier? 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

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