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Troy Engines, Ltd., 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, Ltd., 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 carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd. has gathered the following information relating to its own cost of producing the carburetor internally: points 17.00 Units Per per Unit Year 517 S 289,000 8 136,000 Uitect ateriais Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 9 250.000 $ 44 5748,000 "One-third supervisory salaries, two-thirds depreciation of special equipment no resale value) Required: 1. Assuming the company has no alternative use for the focities that are now being used to produce the carburetors, what would be the financial advantage disadvantage of buying 17000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that the carburetors were purchased, Troy Engines, Lid., could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per yeat. Given this new assumption, what would be the ninancial advantage (disadvantage of buying 17,000 carburetors from the outside supplier? 4. Given the now assumption in requirement should the outside supplier's offer be accepted? Answer is not complete Complete this question by entering your answers in the tabs below. Required 3 Required 4 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 (sadvantage of buying 17,000 carburetors from the outside woller? E o ar does not indicate Troy Engines, Ltd., 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 carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Lid.. for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd. has gathered the following information relating to its own cost of producing the carburetor internally Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 17,000 Units Per per Unit Year $ 17 $ 289, Bee 8 136,000 68,000 6 182.000 9 153,000 $ 44 $ 748, ea "One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value) Required: 1. 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 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, Lid., could use the freed capacity 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 advantage disadvantage of buying 17.000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Should the outside supplier's offer be accepted? Check my work mode. This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Troy Engines, Lid, manufactures a variety of engines for use in heavy equipment. The company has always produced of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines. Lad for a cost of $35 per unit. To evaluate this offer, Troy Engines, Led, has gathered the following information relating to its own cost of producing the carburetor internally 17.000 $17 $289,00 8 136.000 Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 6 9 $44 102,600 153,000 748.000 "One-third supervisory salaries, two-thirds depreciation of special equipment no resale value] Required: 1. 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 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, Lid, could use the freed capacity 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 advantage disadvantage of buying 17,000 carburetors from the outside supplier? 4. Given the new assumption in requirement should the outside supplier's offer be accepted? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Suppose that if the carburetors were purchased, Troy Engines, Lid., could use the freed capacity 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 advantage (disadvantage of buying 17.000 carburetors from the outside supplier? Financial advantage Check my work mode. This shows what is corrector incorrect for the work you have complete se fut does not indicate como parts for its engines, including of the carburetor. An outside supplier has redes one type of carburetor for a cost of us per unit. To evaluate this after royngnes. Lid has gathered the forong information producing the carburetor internally TroyEngines cost of Unit Direct materials Directa variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated $44 5748,000 "One-third supervisory salaries two-thirds pection of special equipment inore value Required LAS e cony sneative for that are now e d to produce the cartron d be the financial advantage osadvantage of buying 17000 Carburetors from the 2. Should the outside Supersoffer be accepted 3. Suppose that if the carburetors were purchased, Troy Engines. d. could use the red capacity to launch a new product Thement margin of the new product would be $170.000 per year. Given this new assumon what would be the financial advantage disadvantage of buying 17,000 carburetors from the outside supplier? 4. Given the new assumption in requirement should the outside super offer be accepted? Answer is not complete Complete this question by entering your answers in the tabs below. Required 2 Required) Given the new assumption in requirement should the side wuppliers offer be accepted?

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