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Futura Comipony purchases the 73,000 atarters thatit installs in is standard line of tum tractois from a supgliet for the price of 512.70 per unit.

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Futura Comipony purchases the 73,000 atarters thatit installs in is standard line of tum tractois from a supgliet for the price of 512.70 per unit. Due to a reduction in osiput, Bhe compeny now thas iale capacly that could be used to produce the athrths father thme buythe them from an outside suppuer. However, the comparyy's chief engineer is opposed to making the startera because the production cost per unitis $13:30 as shown below: if futira decides to make the starters, a supervisor would have to be hired (at a salacy of $116,800) to ovorice production. Howevel. the congpany has sufficlent iole tooks and machinety such that no new equipment would havi to be purchosed. The rent charge above is based on space ugilized in the plant. The totat rent on the plant is $88,000 per period. Degreciavion is due to obsoleseence rather than woar and ted Required: What is the fnnancial advantage (disedvamage) of making the 73,000 tharters inste od of buying them from an outside suppliet

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