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Futura Company purchases the 66.000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.20 per

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Futura Company purchases the 66.000 starters that it installs in its standard line of farm tractors from a supplier for the price of $12.20 per unit. 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 suppler. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.80 as shown below: por una $ 5.00 rotalt Direct materials Direct Tabor Supervision Depreciation Variable facturing overhead 1.60 $ 105,60 Total product cost Futura decides to make the starters, a supervisor would have to be hired at a salary of S105,600) 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 $87000 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? nancial advantage

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