Compary buches the stars that was a standard line of tarm tractors from a supplier for the price of $12.90 Due to the company now has de capacity that could be used to produce the starters rather than wygt om de wet However, the companyschef engineers opposed to making the starters because the production couper 0 0 as shown below Deprecies Total product tua decides to make the starters, a supervisor would have to be thered at a salary of $140.400) to oversee production However, the company has sufficient de tools and machinery such that no equipment would have to be purchased. The rent charge above s based on space is the plant. The totalrent on the plant is 1000 per period Depreciation is due to obsolescence rather Bawear and tear Required What is the financial advantage disadvantage of making the 73.000 starters instead of buying them from an outside supplier? 09 Saved He Futura Company purchases the 78,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.90 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 supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $13.50 as shown below: Total Per Unit $ 6.00 3.50 1.80 1.40 0.40 0.40 Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost $ 140,400 $ 109,200 $ 31,200 $ 13.50 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $140.400) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $81,000 per period. Depreciation is due to obsolescence rather than wear and tear. Required: What is the financial advantage (disadvantage) of making the 78.000 starters instead of buying them from an outside supplier? $ Financial advantage 46,800