WILL RATE
omen cost of procticing the carturetor interition? Aequired 2 Sheruld the ostsice soppler' cifter be accepted? 4. Given the new avsumption in reduerement 3 shoud the ouduge suppiars efter be accegied? Q Arswer is not complete. Complete this quentios try eatering vour answers in the tabs below. grivi cost ot produciog thin carburcto internaly? Fequired: 2. Snouid the oucvide tupbliet s oifler be ikcisited? Q. Answer is not complete. Complete this quesulon by rutering vouer answers le then tabs below. wegment matgin of the new product nould be $2 do,boe per year. Troy Engines, Ltd. manufactures a varlety 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 suppller has offered to sell one type of carburetor to Troy Engines, Lid, for a cost of $37 per unc. To evaluate this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor internally: "One-third supervisory solaries, two-thirds depreciation of speciat equipment (no resale value). Required: 1. Assuming the company has no olternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of biying 23.000 carburetors from the outside supplier? 2. Should the outside supplier's offer be occopted? 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 $230,000 per year, Given this now assumption, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside suppler's offer be accepted? 8. Answer is not complete. Complete this question by entering your answers in the tabs below. Assuming the company has no alternative use for the facilies that are now being used to produce the carburetors, what would be the finencial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? 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 ail of the carburetors An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd, for a cost of $37 per unit To evaluate this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor internally: "One-third supervisory salaries, two-thirds depreciation of special equipment (no resale value) Required: 1. Assuming the company has no alternative use for the faclities that are now being used to produce the carburetors, what would be the financial advantage (disodvantage) of buying 23,000 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 wauld be $230,000 per year. Given this new assumption, what would be the financial advantage (disadyantage) of buying 23,000 carburetors from the outside suppiter? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Q Answer is not complete. Complete this question by entering your answers in the tabs below. 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 $230,000 per year, Given this new assumption, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier
