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Please explain to me how you get the answer Im so confused thank you Check my work Futura Company purchases the 62,000 starters that it

Please explain to me how you get the answer Im so confused thank you image text in transcribed
image text in transcribed
Check my work Futura Company purchases the 62,000 starters that it installs in its standard lin per unit. Due buying them from an outside supplier production cost per unit is $11.00 as shown below: e of farm tractors from a supplier for the price of $10.60 to a 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 s 4.00 Direct labor 3.00 1.90 117,800 1.30 80,600 0.60 0.50 31,000 Variable manufaeturing overhead Total product cost $11.00 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $117,800) 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 plant. The total rent on the plant is $90,000 per period. Depreciation is due to obsolescence rather than wear and tear What is the financial advantage (disadvantage) of making the 80,600 starters instead of buying them from an outside supplier? Prey 10f 21 Next > 3 MacBook Air

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