Troy Engines, Ltd, manufactures a variety of engines for use in heavy equipment. The company...

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Troy Engines, Ltd, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd, for a cost of $30 per unit. To evaluate this offer, Troy Engines. Ltd. has gathered the following information relating to its own cost of producing the carburetor internally 13, 000 Units Per Per 13 169,000 9 117,000 3 39,000 3 39,000 78,000 34 442,000 Direct labor Variable manufacturing overhead Pixed manufacturing orerhead, alloeated Total cost 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 13,000 carburetors from the outside supplier? ences2 Should the outside suppliers 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 would be $130,000 per year. Gven this new assumption, what would be financial advantage (disadvantage) of buying 13,000 carburetors from the outside supplier? 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 Assuming the company has no altermative use for the facilities that are now being used to the tors, what inancial (dsadvantage)

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