Futura Company purchases the 70,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.60 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 supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $13.00 as shown below: If Futura decides to make the starters, a supervisor would have to be hired (ot a salary of $140,000 ) to oversee production, However, the company has sufficient idie tools and mochinery 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 $83,000 per period. Depreciation is due to obsolescence rather than wear and tear. Required: What is the financial advantage (disadvantage) of making the 70,000 starters instead of buying them from an outside suppller? Exercise 13-13 (Algo) Sell or Process Further Decision [LO13-7] Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $66,000 per ton, one-fourth of which is allocated to product X15. Seven thousand four hundred units of product 15 are produced from each ton of clypton. The units can elther be sold at the split-off point for $18 each, or processed further at a total cost of $9,500 and then sold for $23 each. Required: 1. What is the financial advantage (disadvantage) of further processing product 15 ? 2. Should product 15 be processed further or sold at the split-off point