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Futura Company purchases the 63,000 starters that it installs in its standard ine of farm tractors from a supplier for the price of $1240 per

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Futura Company purchases the 63,000 starters that it installs in its standard ine of farm tractors from a supplier for the price of $1240 per uni. 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 suppiler. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $13.50 as shown below: 11 Futura decides to make the starters, a supervisor would have to be hired (at a salary or $119,700 ) to oversee production. However, the compary 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 sent on the plant is $85,000 pet period. Depreciation is due to obsolescence rather than wear and tear. Required: What is the financial advantage (disadvantage) of making the 63,000 stanters instead of buying them from an outside supplief

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