on.co k problems Futura C per unit. Due to a purchases the 78,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $13.90 reduction in output, the company now has idle capacity that could be used to produce the starters rather than However, the company's chief engineer is opposed to making the starters because the production cost per unit is $14.40 as shown below $7.00 3.50 1.80 $117,000 1.20 78,000 0.40 0.50 Supervision Rent $14.40 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $117,000) 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 plant. The total rent on the plant is $88,000 per period. Depreciation is due to obsolescence rather than wear and tear What is the financial advantage (disadvantage) of making the 78,000 starters