Question: Can someone please help? This is all one question. Direct labor Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The




Direct labor Troy Engines, Limited, 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, Limited, for a cost of $35 per unit . To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally. Per 22,000 Units Unit per Year Direct materials $ 330,980 176,000 Variable manufacturing overhead 66,000 Fixed manufacturing overhead, traceable 66,000 Fixed manufacturing overhead, allocated Total cost $ 35 $ 770,000 "One-third supervisory solares: 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 22,000 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, could use the freed capacity to launch a new product. The segment margin of the new product would be $220,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 22,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? $ 15 8 3 3* 6 132,000 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 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 22,000 carburetors from the outside supplier? Required 2 > Required: 1. Assuming the company has no alternative use for the the financial advantage (disadvantage) of buying 22,000 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy segment margin of the new product would be $220,000 (disadvantage) of buying 22,000 carburetors from the ou 4. Given the new assumption in requirement 3, should th Complete this question by entering your answers in Required 1 Required Required 3 Required 4 Should the outside supplier's offer be accepted? Ores ONO 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? es Yes No
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