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Troy Engines, Limited, manufactures a vatiety of engines for use in heavy equipment. The company has always procuced all of the necessary paits for its
Troy Engines, Limited, manufactures a vatiety of engines for use in heavy equipment. The company has always procuced all of the necessary paits 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 foliowing information retating to its own cost of producing the carburetor internally: Required: 1. Assuming the company has no alternative use for the facilios that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 22,000 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 $220,000 per year, Given this new assumption, what would be the financial advantage (disadvantage) of buying 22,000 carburetors from the outside supplier? 4. 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 22,000 carburetors from the outside supplier? the financial advantage (disadvantage) of ber for the facilities that are now being used 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the segment margin of the new product would be $220,000 per year. Given this new assump (disadvantage) of buying 22,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3 , should the outside supplier's offer be acc Complete this question by entering your answers in the tabs below. Should the outside supplier's offer be accepted? 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetor5, what wou the financial advantage (disadvantage) of buying 22,000 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 segment margin of the new product would be $220,000 per year. Given this new assumption, what would be the financial adva (disadvantage) of buying 22,000 carburetors from the outside supplier? 4. 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. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to iaunch a new product. The segment margin of the new product would be $220,000 per year. Given this new assumption, what would be the finandal advantage (disadvantage) of buying 22,000 carburetors from the outside supplier? 1. Assuming the company has no alternative use for the facilities that are now being used to produce the ca the financial advantage (disadvantage) of buying 22,000 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 segment margin of the new product would be $220,000 per year. Given this new assumption, what would (disadvantage) of buying 22,000 carburetors from the outside supplier? 4. 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. Given the new assumption in requirement 3 , should the outside supplier's offer be accepted
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