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Futura Compony purchases the 72,000 starters that it installs in is standard line of farm tractors from a supplier for the price of $1070 per

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Futura Compony purchases the 72,000 starters that it installs in is standard line of farm tractors from a supplier for the price of $1070 per unit. Due to a reduction in output, the company now has idie capacity that could be used to produce the starters father 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 $10.80 as shown below: If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $100,800 ) to oversee production. However, the compary has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space uteired in the plant. The total rent on the plant is $83.000 per period. Depreciation is dive to obsolescence rather than weat and teat. Required: What is the financial advantage (deadvantage) of making the 72.000 starters instead of buying them trom an outside supplief

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