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Troy Engines ud manufactures a vanety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its
Troy Engines ud manufactures a vanety 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 oftet, Troy Engines, ud, has gathered the following information relating to its own cost of producing the carburetor internally 10. Direct Tabor Varile facturing overhead Fixed s tarturing vores traceable ved manufacturing overhead located "One-third supervisory states, 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 16.000 carburetors from the outside suppler? 2. Should the outside wuppliers offer be accepted? 3. Suppose that the carburetors were purchased, Troy Engines. Lid could use the weed capacity bunch new productThe segment margin of the new product would be $100.000 per year. Given this new assumption, what would be the financial advantage disadvantage of buying 15.000 carburetors from the outside suppiler? 4. Given the new assumption in requirement 3. Should the outside Suppliers offer be accepted Complete this question by entering your answers in the tabs below Required 1 Required 2 gured Red 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carbuntars, what would be the financial an d advantage buying 15000 carburetors from the outste sul Required 2 > Soyuell tolyut ile tew produce would be $150.000 per year, Given (disadvantage) of buying 16,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3. should the outside supp Complete this question by entering your answers the tabs belon Required 1 Required 2 Required 3 Required 4 Should the outside supplier's offer be accepted? ............. Yes I ONO Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produ the financial advantage (disadvantage) of buying 16.000 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 capacit segment margin of the new product would be $160.000 per year. Given this new assumption, wha disadvantage) of buying 16.000 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. Required 1 Required 2 Required 3 Required 4 Given the new assumption in requirement 3, should the outside supplier's offer be accepted?
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