11. 17)

Check my work 17 Futura Company purchases the 55.000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.00 per unit. Due to a reduction in output the company now has idle capacity that could be used to produce the starters rather than buying them from an outside suppliet. However the company's chiet engineer is opposed to making the starters because the production cost per unit is $12.50 as shown below Dieet materials bet labor Supervision Depreciation Variable manufacturing swethand Het Total prodotto con Per tal 57.00 2.20 1.50 $ 12,500 1.00 55,000 0.00 0.00 22.000 Futura decides to make the starters. a supervisor would have to be brired at a salary of $82.500 to oversee production. However, the company has sufficientide tools and machinery such that no new equipment would have to be purchased. The rent choror above based on space utilized in the plant. The totalrent on the plant is 581,000 per period, Depreciation is due to obsolescence rather than wear and te Required: What as the financial advantage desativantages of making me 15.000 starters instead of buying them from an outuide suppler