Question: Could use some help on.com/low/connect htm rk Help Save &Exlt Su Check my wa Troy Engines Ltd, manufactures a variety of engines for use in

Could use some help
 Could use some help on.com/low/connect htm rk Help Save &Exlt Su
Check my wa Troy Engines Ltd, manufactures a variety of engines for
use in heavy equipment. The company has always produced all of the

on.com/low/connect htm rk Help Save &Exlt Su Check my wa 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 $35 per unit. To evaluate this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor internally Per Units Unit Per Direct materials Direct labor Varlable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost $ 330, eee 176,0e0 66,000 3 66,000 132,860 s 35 778,8 One-third supervisory salaries, two-thirds depreciation of special equipment (no resale value) Required 1. Assuming the company has no alternative use for the facilities that are now be the financial advantage (disadvantage) of buying 22.000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? a Suppose thet if the carburetors segment margin of the new product would be $220 000 per year being used to produce the carburetors, what were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product The 3

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