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Futura Company purchases the 76,000 starters that it installs in its standard line of farm factors from a supplier for the price of $1010 per

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Futura Company purchases the 76,000 starters that it installs in its standard line of farm factors from a supplier for the price of $1010 per unit. Due to a reduction in output the company now has de 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 $10.90 as shown below Direct waterinis Direct labor Supervision Depreciation Varble manufacturing overhead Rent Total product cost Per Unit Total $ 4.00 3.00 1.30 $ 136,000 1.10 $ 3.000 0.60 0.00 $ 30,400 310.00 Il Futura decides to make the starters, a supervisor would have to be hired at a salary of $136,800) 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 plantThe total rent on the plant is $82.000 per perlod Depreciation is due to obsolescence rather than wear and tear Required: What is the financial advantage disadvantage of making the 76.000 starters instead of buying them from an outside supplier

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