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Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment, The company has always produced all af 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 af the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to seil one type of carburetor to Troy Engines, Limited, for a cost of $36 per unt. To evaluate this offer, Troy Engines, Limited. has gathered the followirtg information relating to its. Dwn cost of producing the carburetor internally. Required: 1. Assuming the compary has no alternative use for the faclities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20.000 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 $200,000 per year. Glven this new assumption, what would be the financial advantage (disadvantage) of buying 20.000 carburetors from the outside suppller? 4. Glven the new assumption in requirement 3 , shouid the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. 1. Assuming the company has no altemative use for the facilizies that are now being used to produce the carburetors, whit would be the financial advantage (disadvantage) of buying 20,000 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 $200,000 peryear, Given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. Given the newassumption in requirement 3 , should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Assuming the campany 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 20,000 carburetors from the outside supplier

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