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Futura Company purchases 64.000 starters from a supplier at $11.30 per unit that it installs in farm tractors. Due to a reduction in output, the

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Futura Company purchases 64.000 starters from a supplier at $11.30 per unit that it installs in farm tractors. Due to a reduction in output, the company now has enough idle capacity to produce the starters rather than buying them from the supplier. However, the company's chict engtneer is opposed to making the starters because the production cost per unit is $12.10. as shown below: If futuro decides to make the starters, a supervisor would be hired (at a salary of $121,600 ) to oversee production. However, the company has sufficient idile tools and machinety 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 $87000 per period Required: What is the financial advantage (disadvantage) of making the 64,000 starters instead of buying them from an outside supplier

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