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Futura Company purchases the 61,000 starters that in installs in it's standard line of farm tractor thor a supplier for the price of $1 30

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Futura Company purchases the 61,000 starters that in installs in it's standard line of farm tractor thor a supplier for the price of $1 30 per unit. Due to a reduction in output the company now has lidle 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 imailing the starters because be production cost per unit is $13.30 as shown below Direct materials 6.OD Direct labor 3.DD Supervision 2.09 $ 122, DID Depreciation 1. 10 $ 67, 109 Variable manufacturing overhead Rent 0-40 $ 20, 410 Total product cost $ 13.30 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $122.000) 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 $88,000 per period. Depreciation is due to obsolescence rather than wear and tear, Required: What is the financial advantage (disadvantage) of making the 61,000 starters instead of buying them from an outside supplier

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