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Troy Engines, Limited, manufsctures a variety of engines for use in heavy equipment The compony has always produced all of the necessary parts for its

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Troy Engines, Limited, manufsctures a variety of engines for use in heavy equipment The compony 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 Iroy Erigines. Limited, for a cost of $35 per unit. To evaluate this offe. Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Required: 1. Assuming the company has no alternative use for the faciaies that are now being used to produce the carburetors, what would be: the financlal advantage (disadvantage) of buying 17,000 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 capactly to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be the financial adivontage (disadvantage) of buying 17000 carburetors from the outtide supplier? 4. Given the new assumption in requirement 3 , should the outside supplier's offer be accepted

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