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Futura Compery purchases the 68,000 starters that it instwis in its standard line of farm tractons from a supplier for the peice or sto:o. per

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Futura Compery purchases the 68,000 starters that it instwis in its standard line of farm tractons from a supplier for the peice or sto:o. per unit. Due to o ceduction in output the company now has idlo capocity that could be used to produce the starters tather thin buying them from an outside suppliec Howevec the company's chef ehoineer is opposed to making the starters becaise the. production cost per unit is $1080 as shown below If Futura decistes to make the starters, a supervisor would have to be hired (ot a solacy of $108,800 ) to oversee production. Howeves. the company has sutficient idio tools and machinery soch that no now equipment would have to be purchased Ther rent chacte above is based on space utilized in the plant. The total rent on the plant is $85.000 per period Depreciation is dive to obsolescence rathe? than wear and teat Required: What is the financisl advantage (disadvantage) of making the 68.000 starters insteod of buying them from an ounsido supplier

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