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Futura: Company purchases the 61,000 starters that it installs in its standard line of fafm tractors from a supplier for the pice of 510,10 pet

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Futura: Company purchases the 61,000 starters that it installs in its standard line of fafm tractors from a supplier for the pice of 510,10 pet unit. Due to a reduction in output, the company now has idle capacity that coutd be used to procluce the stafters rather than buying them from an outside supplier. However. the compary's chief engineer is opposed to making-the starters becaise the production cost per unit is $10.90 as shown below. If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $103.700 ) to oversee production. However, the company has sufficient idie 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 $87000 per period. Depreciation is due to obsolescence rather than wear and tear, Recuired; What is the financial advantage (disadvantage) of making the 61,000 starters instead of buying them from an outside supplier

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