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Futura Company purchases the 70,000 staters that it installs in its standard line of farm tractors from a supplier for the price of 51399 per

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Futura Company purchases the 70,000 staters that it installs in its standard line of farm tractors from a supplier for the price of 51399 per unit. Due to a reduction in output; the company now has ide capacity that could be used to produce the starters rather than buying them from an outside supplier, Howevec, the compariy's chief engineer is opposed to making the starters because the production cost per une is $14.40 as shown belowe If Futura decides to moke the starters, a supervisor would have oo be hired (at a salary of $119,000 ) to oveisee production. However. the company has sufficient idie tools and machinery such that no new equipment would have to be purchased The reot charge above is based on space utilized in the plant. The total rent on the plant is $88,000 per period Depreciation is due to obsolescence rather than weat and teat Required: What is the financial advantage (disadvantoge) of makisg the 70,000 starters instead of boying them from an outside supplier

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