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 Unit 16,000 Units per Year Direct materials $ 16 $ 256,000 Direct labor 12 192,000 Variable manufacturing overhead 3 48,000 Fixed manufacturing overhead, traceable 3* 48,000 Fixed manufacturing overhead, allocated 6 96,000 Total cost $ 40 $ 640,000 *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 supplier?
2. Should the outside supplier’s 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 $200,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier?
4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?

Answers

Answer 1

Based on the various costs involved in making the carburetors, the financial advantage(disadvantage) of buying outside is -$60,000. The offer should be rejected.

What is the cost of making the carburetors?

This can be found as:

= Direct materials + Direct labor + Variable Overhead + Fixed overhead (supervisory salaries)

= 16 + 12 + 3 + 3/3

= $32 per unit

Financial advantage (disadvantage):
= (32 - 35) x 20,000

= -$60,000

If Troy Engines, Limited were to buy from the outside supplier, they would incur a financial disadvantage of -$60,000 so they should NOT buy from the outside supplier.

Find out more on making purchase decisions at https://brainly.com/question/15858211.

#SPJ1


Related Questions

Does participant possess appropriate labor market information?.

Answers

A participant is supposed to be in possession of the labor market information.

What is labor market information?

Labor market information, or simply LMI, is referred to as such an information where an individual can utilize the sources to make efficient and informed decisions in different aspects.

Hence, the participant has access to the labor market information.

Learn more about labor market information here:

https://brainly.com/question/14698699

#SPJ1

Q11. When marginal costs are below average total costs, a. average fixed costs are rising. b. average total costs are falling. c. average total costs are rising. d. average total costs are minimized.

Answers

When marginal costs are below average total costs, average total costs are falling. Option B is correct.

What is Marginal Cost?

In simple terms, marginal cost is defined as the extra cost of producing more or an extra unit of a product.

In other words, it is the cost of producing extra units of a product.

Learn more about Marginal Cost

https://brainly.com/question/3200587

#SPJ1

Select one college you are interested in and research their financial aid program.
Name of college/university:
Research question:
What are the annual estimated costs of attendance? (tuition, room & board,
etc.)
What percentage of students receives financial aid?
When is their financial aid application due?
URL link to
sources:

I NEED HELP ASAP I WILL MARK BRAINLIST AND I WILL PUT 20 POINTS!!!!!!!

Answers

Answer:

CEH one college you are interested in and research their financial aid

A marketing strategy that stimulates immediate consumer action is
Opublic relations.
O advertising.
O personal selling.
O sales promotion.

Answers

Answer:

D) Sales Promotion

Explanation:

Sales promotion involves any incentive used by manufacturers to encourage the sales force to actively sell a brand or distributors/consumers to buy a brand. 

1. mcknight company is considering two different capital expenditure proposals. project a will cost $400,000, has an expected useful life of 10 years, a salvage value of zero, and is expected to increase net profit in year 10 by $70,000. project b will cost $310,000, has an expected useful life of 10 years, a salvage value of zero, and is expected to increase net profits by $55,000. a required rate of return of 9% is appropriate for both projects. calculate: a) the net cash flow in year 10 for projects a and b b) the present value of the net cash flows for projects a and b

Answers

Answer and Explanation:

The computation of the net present value and profitability index of each project is shown below;

The net present value

For the project 1

= Present value × PVIFA factor for 10 years at 9% - initial cost

= $70,000 × 6.4177  - $400,000

= $49,239

for the project 2

= Present value × PVIFA factor for 10 years at 9% - initial cost

= $55,000 × 6.4177  - $310,000

= $42,973.5

Now the profitability index is

For project 1

= ($70,000 × 6.4177) ÷ $400,000

= 1.12

And, for project 2

= ( $55,000 × 6.4177) ÷ $310,000

= 1.14

Drivers become subject to the liability insurance law when accident damages amount to: 1. $100 to property of one person 2. $25 to property of one person 3. at least $1,000 to property of one person 4. $50 to property of one person

Answers

The drivers become subject to the liability insurance law when their accidental damage amount to at least $1,000 to property of one person.

What is an accidental damage?

These refers to the damage caused to third party property or vehicle while using an insured car.

Here, the drivers become subject to the liability when their accidental damage amount to at least $1,000 to property of one person.

Therefore, the Option 3 Is correct.

Read more about accidental damage

brainly.com/question/1924645

#SPJ4

Suppose that in a certain economy, the growth rate of the population is 1.2 percent and the real GDP growth per capita is 2.1 percent. The real GDP growth rate must be equal to:

Answers

Answer:

3.3 percent. (growth rate of the population + real GDP growth per capita = real GDP growth rate).

Explanation:

Information campaigns about tobacco hazards and taxes on tobacco are two ways to discourage its use. Which one causes a movement along the demand curve, without making changes to the demand curve itself

Answers

Information campaign on hazardous tobacco one causes a movement along the demand curve.

What is an information campaign?

Information campaign's main motive is to provide the useful information to the people. The people in information campaign try to spread the awareness about the different things like save the girl child, equality above everything, say no to tobacco.

Thus, it is an Information campaign on hazardous tobacco.

For more details about Information campaign, click here:

https://brainly.com/question/1271932

#SPJ1

Question 10 Fill in the blank: Since the project manager uses the project charter throughout the project, it acts like a _____ for the project.

Answers

Since the project manager utilizes the project charter throughout the project, it acts like a authority for the project.

What is a project charter in project management?

During the project planning phase, the project charter defines out the project's goal, objectives, stakeholders, risks, assets, and dependencies, making it an essential document in project management.

For example, a person will learn what goes into a project charter and how to construct one in this section.

Thus, it is authority.

For more information about project charte, click here:

https://brainly.com/question/23693744

#SPJ1

Using the spreadsheet above, enter the attained figures to obtain the sales growth for each marketing campaign. What was your increase in sales for each campaign (television, social media, and website)

Answers

The attained figures to obtain the sales growth  is $4,000 (TV); $16,000 (Social Media); $3,000 (Web).

What is Sales growth rate?

Sales growth rate is known to be one that looks at a  company's strength to get revenue via sales over a fixed period of time.

Note that rate is used by your company to analyze  internal successes and other issues and based on the above, The attained figures to obtain the sales growth  is $4,000 (TV); $16,000 (Social Media); $3,000 (Web).

See full question below

Using the spreadsheet above, enter the attained figures to obtain the sales growth for each marketing campaign. What was your increase in sales for each campaign (television, social media, and website)?

A.$6,000 (TV); $12,000 (Social Media); $2,000 (Web)

B.$4,000 (TV); $16,000 (Social Media); $3,000 (Web)

C.$4,000 (TV); $18,000 (Social Media); $6,000 (Web)

D.$8,000 (TV); $14,000 (Social Media); $4,000 (Web)

Learn more about spreadsheet from

https://brainly.com/question/4965119

#SPJ1

At a local town council, people debated a proposal that would change the use of public space for recreational use by demolishing a skating park and building an arboretum. This is known as the problem of:Multiple choice question.locating scarce resources.overusing scarce resources.allocating scarce resources.eliminating scarce resources.

Answers

Using a public space for recreational use by utilizing it for a better purpose is regarded as an allocation of scarce resources. Hence, Option C is the correct statement.

What is the need to allocate scarce resources?

The resources that are available to humans are scarce in nature because we live in a world where humans' wants are unlimited but the resources available to satisfy those wants are limited.

Hence, Option C is the correct statement.

Learn more about scarce resources here:

https://brainly.com/question/3081250

#SPJ1

Elena is volunteering at a nonprofit organization. She notices that there doesn’t seem to be any network security at the office. Her supervisor says, “We don’t need to worry about that. We’re a small organization.” What arguments can Elena make about the need for network security?

Answers

Network protection is vital to each domestic and enterprise network. Therefore, Whether it is a small organization or a big organization, Network Security is important.

What is the requirement for network security?

Many houses with high-velocity net connections have one or extra wi-fi routers, which may be used if now no longer nicely protected. A strong community protection machine allows lessening the chance of statistics loss, robbery, and vandalism.

hence, in this way, Elena can make her superiors realize the need for network security.

Learn more about Network security here:

https://brainly.com/question/26282951

#SPJ1

Which of these can prevent an accident in the workplace?
A. Not wearing appropriate gear
B. Ignoring safety procedures
O C. Being fatigued
D. Following safety procedures

Answers

Answer:

answer;D

Explanation:

Allan Jabber invested $400 at the beginning of each of the last 12 months in the shares of a mutual fund that paid no dividends. Which method will he correctly choose to calculate his average price per share from the monthly share prices

Answers

The method that  he will correctly choose to calculate his average price per share from the monthly share prices is: Harmonic mean.

What is Harmonic mean?

Harmonic mean can be defined as a method that is used by companies or organization to determine  average price per share.

Formula for harmonic mean is:

Harmonic mean=Number of observations ÷ Number of series

Therefore  Harmonic mean is use to find average price.

Learn more about harmonic mean here:https://brainly.com/question/26491057

#SPJ1

Sandra owns a small manufacturing business. At the end of a given accounting period, she hired the services of a tax accountant. How will the
tax accountant help Sandra's business?
A by increasing the business's tax refunds
B by helping decrease the business's Income tax liability
C by helping devise new tax policies for the business
D by helping the business avold all types of taxes

Answers

Answer: B. By helping decrease the business’ income tax liability.

When the parties have not expressly agreed otherwise, Article 2 of the Uniform Commercial Code acts to __________ missing or open terms in a contract for the sale of goods between merchants.

Answers

Article 2 of the Uniform Commercial Code acts to fill in missing or open terms in a contract for the sale of goods between merchants.

What is contract?

Contract refers to the agreement between the two parties which is enforceable by the law. The contract must include the monetary conditions and free will of both the parties.

Article 2 of the Uniform Commercial Code acts governs the sale of the goods which provides the rules no been mentioned in the contract by the parties in the written contract.

Thus the act provides the default rules and the gap fillers in the missing or open terms in a contract for the sale of goods between merchants.

Learn more about acts here:

https://brainly.com/question/20345762

#SPJ1

What is one of the most important components of the production
process?
A
new technology
B goods and services
I
C human resources
D
inputs and outputs

Answers

Answer:

C. human resources because every business needs someone to supervise.

.............

Amani is the newly hired manager at MyCoffee, a global coffee roasting company. As part of her responsibilities, Amani often gives interviews to media outlets and speeches to community organizations. Amani is playing the role of a

Answers

Amani is playing the role of a spokesperson as she often gives interviews to media outlets and speeches to community organizations.

Who is a firm's spokesperson?

This refers to an official that is for transmitting information about their organization and its goals to the people outside it.

Hence, in this case, she is playing the role of a spokesperson as she often gives interviews to media outlets and speeches to community organizations.

Read more about spokesperson

brainly.com/question/13127768

#SPJ1

What countries are described as the economic Asian Tigers?
A. Tasmania, Madagascar, Sri Lanka, and Kenya
B. China, Japan, Vietnam, and Cambodia
C. Taiwan, Singapore, Hong Kong, and South Korea
D. India, Japan, Laos, and Burma
SUBMIT

Answers

C.Taiwan, Singapore, Hong Kong, and South Korea

Answer:

The answer is C

Explanation:

Hope this helps........if not then sorry for wasting your time and may God bless you

The following information has been taken from the perpetual inventory system of Elite Mfg Co. for the month ended August 31:Purchases of direct materials $60,000Direct materials used $50,000Direct labor costs assigned to production $25,000Manufacturing overhead costs incurred (and applied) $35,000Balances in inventory August 31 August 1Materials $? $25,000Work in Process $65,000 $47,000Finished Goods $60,000 $43,000The cost of finished goods manufactured in August is:____________A. $147,000B. $92,000C. $57,000D. Some other amount

Answers

Based on the various purchases and costs incurred by Elite Mfg Co., the cost of finished goods in August is B. $92,000.

What is the cost of finished goods?

This can be found as:

= Direct material beginning inventory + Purchase of raw materials - Ending raw materials + Direct labor + Manufacturing overhead + Opening Work in process - Closing WIP

Solving gives:

= 25,000 + 60,000 - 35,000 + 25,000 + 35,000 + 47,000 - 65,000

= $92,000

Find out more on cost of finished goods at https://brainly.com/question/14517626.

#SPJ1

Use what you have learned about managing credit to complete the statements. one reason people choose to file bankruptcy is because some of their debt will be . a major consequence of bankruptcy is that it can an individual’s chances of receiving additional credit for .

Answers

Filing for bankruptcy can eliminate debt. A major consequence of bankruptcy is that it can harm an individual's chances of receiving additional credit.

What is bankruptcy?

Bankruptcy can be defined as the inability of a person to payback debt or the amount borrowed.

Filing for bankruptcy can help to  eliminate or clear a person  debt and the disadvantage of bankruptcy is that  the borrower may be unable to borrow another credit.

Therefore the complete statement is : eliminate/ harm.

Learn more about bankruptcy here:https://brainly.com/question/26392690

#SPJ2

Answer:

eliminate

harm

7 -10 years

Explanation: edge 2022 (economics)

9) what is one downside of using a savings account instead of a checking 1pc
account?
your savings account has high fees attached to it, while your checking account does
not
your savings account has a limit of 6 withdrawals per month, while your checking
account does not
your parents need to help you open a savings account, but you can open a checking
account without them
far fewer banks offer savings accounts, while far more banks offer checking
accounts

Answers

Savings account has a limit of 6 withdrawals per month, while checking account does not, is s one downside of using a savings account instead of a checking account.

What is meant by checking account?

Checking account is the regular account that facilitates the customer to deposits a withdrawal the money any time with no number of limit.

Checking accounts provides the limitless translation to the customer, and for this use businessman or businesswomen uses this account.

Thus, option B is correct.

For more details about checking account, click here:

https://brainly.com/question/22857190

#SPJ1

Copado has a new product management tool with features such as Sprint wall, capacity planner, SAFe compliant, Kanban board with quick actions, and SO much more. What is the name of this new product

Answers

The Copado Firm used a software based tool as its product management tool.

What is the new product management tool?

These are management tool that are used in conceptualization, designing, developing and marketing the newly created goods or services.

A software based product management tool is used by Copado in development and creating of its new product.

Read more about management tool

brainly.com/question/24662469

#SPJ4

Consider an entrepreneur with the following investment opportunity. For an initial investment of $950 this year, a project will generate cash flows of either $1,425 next year or $1,188 next year. The cash flows depend on whether the economy is strong or weak during the year, with both scenarios being equally likely. The market value of the firm's unlevered equity today is $1,116.67. Investors demand a risk premium over the current risk-free interest rate of 5% to invest in this project. Given the market risk of the investment, the appropriate risk premium is 12%. The entrepreneur decides to raise part of the initial capital using debt. Suppose she funds the project by borrowing $660, in addition to selling equity. The debt is risk-free. a. According to MM Proposition I, what is the value of the levered equity? What are its cash flows if the economy is strong? What are its cash flows if the economy is weak? b. What is the return on equity for the unlevered and the levered investment? What is its expected return for the levered and unlevered investment? c. What is the risk premium of equity for the unlevered and the levered investment? What is the sensitivity of the unlevered and levered equity return to systematic risk? How does the levered sensitivity compare to the sensitivity of the unlevered equity return to systematic risk? How does its levered risk premium compare to the unlevered risk premium? d. What is the debt-equity ratio of the investment in the levered case? e. What is the firm's WACC in the levered case? a. According to MM Proposition I, what is the value of the levered equity? What are its cash flows if the economy is strong? What are its cash flows if the economy is weak? According to MM Proposition I, the value of the levered equity is $ (Round to the nearest cent.)

Answers

Answer:

b

Explanation:

Molly exchanges land (adjusted basis of $85,000; fair market value of $78,000) used in her business and common stock held for investment (adjusted basis of $10,000; fair market value of $15,000) for a single parcel of land (fair market value of $93,000) to be used in her business in a like-kind exchange. What is Molly's recognized gain or loss

Answers

If Molly exchanges land (adjusted basis of $85,000. Molly's recognized gain or loss is $5,000.

Recognized gain or loss

Business Common               Land Stock

Amount realized  $78,000        $15,000

Less Adjusted basis ($85,000) ($10,000)

Realized gain(loss) ($7,000)      $50000

Recognized gain(loss) $0           $5000

Therefore If Molly exchanges land (adjusted basis of $85,000. Molly's recognized gain or loss is $5,000.

Learn more about recognized gain or loss here:https://brainly.com/question/17063203

#SPJ1

Suppose the price of a TV is $600 and there are two consumers in the TV market. Joe is willing to pay $700, and Isaac is willing to pay $550. How much consumer surplus exists in this market

Answers

If Joe is willing to pay $700, and Isaac is willing to pay $550. The consumer surplus that  exists in this market is: $100.

Consumer surplus

Using this formula

Consumer surplus=Amount Joe is willing to pay-Price of TV

Let plug in the formula

Consumer surplus=$700-$600

Consumer surplus=$100

Therefore the consumer surplus that  exists in this market is: $100.

Learn more about  consumer surplus here:https://brainly.com/question/14753335

#SPJ4

Georgina decides to take a dozen cupcakes to school to sell so she can raise money for her school trip to New Orleans. She prices the cupcakes at $0.50 each. With in 15 minutes she has sold all of her cupcakes, and through out the day teachers and students ask her if she has anymore.

This market model is in a [______]?
This is for a economics class I didn't know what catagory to pick

Answers

Answer:

Shortage

Explanation:

I got it correct because I watched the given recording.

Georgina decides to take a dozen cupcakes to school to sell so she can raise money for her school trip to New Orleans. This market model is in a "competitive market".

Georgina operates in a competitive market characterized by high demand and a desirable product: her cupcakes. The price point of $0.50 each aligns with the perceived value which is resulting in swift sales within 15 minutes.

Subsequent inquiries from both teachers and students demonstrate sustained interest indicating that Georgina's cupcakes have achieved product-market fit.

Georgina's success in selling all cupcakes swiftly and generating ongoing inquiries highlights a well-balanced market equilibrium within the school community.

To know more about market model here,

https://brainly.com/question/15483550

#SPJ3

Imagine you work in a factory that produces several types of bicycles. A county bureaucrat delivers a report listing numbers, types, and prices of bicycles the factory should make for the upcoming season. Which kind of economic system is this most likely to be? Explain

Answers

The economic system depicted in this example is a Command Economy since the government determines the production decision.

What is a command economy?

A command economy is an economic system in which the following characteristics are prevalent:

Means of production are publicly owned.Economic activity is controlled by a central authority.Quantitative production goals and raw materials are allotted.

A command economy is different from a:

Market EconomyTraditional EconomyMixed Economy.

Thus, the economic system depicted in this example is a Command Economy since the government determines the production decision.

Learn more about economic systems at https://brainly.com/question/27683891

#SPJ1

An escrow needs two basic elements to be valid. The first is conditional delivery to escrow of funds and transfer documents. The second is a binding contract between the:

Answers

The second is a binding contract between the buyer and seller. As The first is conditional delivery to escrow of funds and transfer documents.

What is binding contract?

Binding contract is the legal agreement that is enforced between the two parties. In this both the person or as many as the person are in the binding contract has to do their responsibilities, if one can fail in doing the responsibility than others can sue them.

Thus, it is buyer and seller.

For more details about Binding contract, click here:

https://brainly.com/question/21167367?

#SPJ1

4-Define "Speculative
Risk" and provide an
example

Answers

Speculative Risk Definition:

Risk that results in an uncertain degree of gain or loss. All speculative risks are made as conscious choices and are not just a result of uncontrollable circumstances. -Loss -No loss -GAIN.

Example:

→ Gambling.

Gambling is a type of speculative risk, and the gambler engages in this activity expecting to finish with more money than she/he started with.

Other Questions
A straight angle equals 180 degrees is true or false? At an incineration facility, 90% of the garbage's volume is lost. The last 10% is in the form of ____.A: PlasmaB: AshC: SludgeD: Steam Passage 1Passage 2This brief essay by author and college professor CharlesAugustus Eggert was published in California in 1913 as partof the collection Why I Am Opposed to Socialism: OriginalPapers by Leading Men and Women. Socialism' was apopular and controversial theory at that time, four yearsbefore the Russian Revolution. No government had yet triedto put the theory of socialism into practice.Why I Am Opposed to Socialismby Charles Augustus EggertI am opposed to Socialism, first, because it isnot an inductively obtained system, but an"ism that postulates qualities in theindividuality of a nation which no nation, orcommunity even, has yet developed to asufficiently high state to make this ism" fit tobe seriously tried.23 4 5In Passage 1, what effect does Eggert achieve bynumbering each point of his argument?He shows how each point against socialism is alogical result of the previous one.He orders each point to show the steps in aprocess that can be followed to defeat socialism.He ranks his arguments against socialism in orderof importance, from most to least important.He conveys that many different arguments can bepresented against socialism. 3 Which of the following is an example of an expression?O3y = 2y + 11O2x + 3y = 2x + 2y + 11O2x + 2y + 3yO2x + 2y + 3y = 2x + 2y + 11Skip5/6 complete4K How would you write 16,340 in scientific notation with 2 significant figures? The Subject of the following sentence is:We went to the store to get some ice.O 1. StoreO 2. ice3. WeO 4. some The health educator uses ________________ to monitor student progress toward objectives and to modify instruction. I didnt understand Please I need your help Solve for the value of z :5(z+4)+5(2-z) Which of the following is an example of Jessie making a cognitive-behavioral change about her afternoon walks?A. She records when and why she doesn't feel like going for a walk.B. She has observed that she doesn't want to go walking when it's cloudy outside.C. She reminds herself that taking a walk will make her feel better, even if she doesn't feel like walking now.D. She believes that she hardly ever misses a walk, so it's not something worth monitoring. Help me i dont get this Which of the following is not a reason why historians study societal change?A.to make better plans for the futureB.to predict future patterns and trendsC.to make inferences about causal relationshipD.to estimate how long it would take to build a road systemPlease select the best answer from the choices provided PLEASE HELP ILL GIVE 20 PTS!!!! What is the measure of an angle if it is 20 less than three times its own supplement? please answer this question When comparing texts, look for what they have inA. their dialogueB.commonC. their marginsD. their settings "Computer Science is no more about computersthan astronomy is about telescopes"- Edsger W. Dijkstra In "The Emperor's New Clothes" what does the opening tell you about the characters?A. Emperor is the main characterB. King is the main characterC. No main character is introducedD. Queen is the main character Individuals diagnosed with schizophrenia often display similar symptoms of individuals suffering from a __________ disorder. a. mood b. somatoform c. dissociative d. conversion What does Gleick believe about the physical book? those who herd flocks and do not settle in one place are called _____________.A. Wandering FarmersB. Nomadic herdersC. migrating shepherds