Question: Need help with number 3 and 4 Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced

 Need help with number 3 and 4 Troy Engines, Ltd., manufactures

Need help with number 3 and 4

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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 20,80 Per Units Unit Per Year $ 17 5 340,000 11 220,000 se.ee 30 60.000 6 120.000 $ 40 $ 500, 3 "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 being used to produce the carburetors, what would be the financial advantage disadvantage of buying 20.000 carburetors from the outside suppler? 2 Should the outside Supplier's offer be accepteo? 3. Suppose that if the carburetors were purchased Troy Engines. Le could use the freed capacity to launch a new product. The segment margin of the new product would be $200.000 per year Given the assumption what would be the financial advantage disadvantagelct buying 20.000 carburetors from the outside support -Gon the sumption in recurement 3. should the otto offer eccepted Complete this question by entering your answers in the tabs below

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