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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 parts for its engines,

Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the parts for its engines, including the carburetors. An outside supplier offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $40 per unit. To evaluate this offer, Troy Engines, Limited, summarized the cost of producing the carburetor internally as follows:
\table[[,Per,18,000 Units Per],[,Unit,Year],[Direct materials,$18,$324,000
Answer the following questions
If the company has no alternative use for the facilities being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 18000 carburetors from the outside supplier?
Should the outside supplier offer be accepted ?
Suppose if the carburetors were puchased, troy engines, could use the freed capacity to lanch a new product with a segment magin of 180000 per year. Given this new assuptions, what would be the financial advantage (disadvantage) of buying 18000 carburetors from the outide supplier?
Given the new assumption in quesrion 3, should the outside suppliers offer be accepted?
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