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Assuming the company has no alternative use for the facilities that are now being used...

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Accounting

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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 15,000 carburetors from the outside supplier? Should the outside supplier's offer be accepted? 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 $150,000 per year. Given this new assumption, what woufd be the financia advantage (disadvantage) of buying 15,000 carburetors from the outside supplien? Complete this question by entering your answers in the tabs below. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Yes

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