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Troy Engines, Umined, manufactures a varlety of engines for use in heavy equipment. The company fas awsys produced ar of the necessary parts for its

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Troy Engines, Umined, manufactures a varlety of engines for use in heavy equipment. The company fas awsys produced ar of the necessary parts for its engines, including all or the carburetors. An cutside supplier has oftered to sell one type of carburetor to Troy Engines, umated, for a cost of $40 per unit. To evaluate this offer. Troy Engines. Limted, thas gathered the following intormation relating to its own cost of producing the carburetor inernaly. ie). Aequired: 1. Assuming the company has no anernative use for the facilies that are now being used to procuce the carturetors, what would be the financial acvantage idisadvantage) of buying 18,000 carburetors from the outside suppler? 2. Should the outside supplier's affer be acceoted? 3. Suppose that if the carburetors were purchased, Tioy Engines, Umited, couid use the freed capacity to launch a new poduct. The segment margin of the new product would be \$:B0,000 per year, Given this new assumption, what would be the finaricial advantage idisadvantagej of bugngy 18000 carburetors from the oulside supphier? 4. Given the new assumption in requirement 3, should the outside suppaer's ofer be accepted? Complete this aeestion by entering voar answers in the tabs belew. Assunirg the company has ne atternative use for the facisies that are now being used to produce the carburators, what would be the thancial advartage (disadvantape) of buving is,000 carburetors from the outside suppier) Required: 1. Assuming the company has no alternative use for the facilltes that are now being used to produce the carburetors, what would be the financlal advantage (disadvantage) of buying 18,000 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, couid use the freed capacity to launch a new product. The segment margin of the new product would be $180,000 per year. Given this new assumption, what would be the financlal advantage (disadvantage) of buying 18,000 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 launch a new product. The segment margin of the new product would be $180,000 per vear. Given this new assumption, what would be the financial advantage (disadvantage) of buying 18,000 carburetors from the outside supplier

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