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 $32 per unit. To evaluate this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor intemally Per Unit $ 14 $ 8 3 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 17,800 Units Per Year 238,000 136,000 51,000 51,000 34 6 102,000 $ 34 $ 578,000 "One third supervisory salaries, two-thirds depreciation of special equipment (no resale value) Doints 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, Ltd 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? Pru Complete this question by entering your answers in the tabs below. Bence Haulted Required Reguve Pequired 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 (disadvantage of buying 17.000 carburetors from the outside supplier? Required 2 > 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, Ltd. 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? Book Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Should the outside supplier's offer be accepted Yes DNO (Required 1 Required 3 > 5 Dom Required: 1. Assuming the company has no alternative use for the facilties 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 if the carburetors were purchased, Troy Engines, Ltd. 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 4. Given the new assumption in requirement 3 should the outside supplier's offer be accepted Bote HI Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that if the carburetors were purchased, Troy Engines, ltd, 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 Required 2 Requind 4 > 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, Ltd., 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 DOOR ht Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a Required 4 Given the new assumption in requirement should the outside suppliers offer be accepted? Yes ONO