Futura Company purchases the 66,000 starters that It Installs In its standard line of farm tractors from a supplier for the price of $12.70 per unit. Du buyling them from an outside production cost per unit Is $13.30 as shown below e to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than supplet However, the company's chief engineer is opposed to making the starters because the Per Unit Total 3 6.00 Direct materials Direct labor Supervision pepreciation variable nanufacturing overhead Rent 3.00 1.9e $ 125,480 1.20 79,280 e.7e e.se s 33,e8 Total product cost $ 13.30 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $125400) 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 utlized 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 66.000 starters instead of buying them from an outside supplier? Answer is not complete. Financial advantage