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PLEASE HELP ME WITH THESE PROBLEMS!!! THANK YOU !!! Futura Company purchasos the 71000 starters that it installs in is standard line of farm tractors
PLEASE HELP ME WITH THESE PROBLEMS!!!
THANK YOU !!!
Futura Company purchasos the 71000 starters that it installs in is standard line of farm tractors from a suppler for the price of $12.70 per unit. Due to a reduction in outpat, the compary now has idie capacity that could be used to produce the starters rather than buying them from an outsido supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $14.00 as shown below. Uf Futura decides to moke the starters, a wpervisor would have to be hired (at a salary of $14 (1,900) to oversee production. Howevec, the company has sulficient ide tools and mochinery such that no now equipment would have to be furcholed. The rent charge above is based on space ulised in the plant. The fotal rent on the plant is $87,000 per peniod, Depreciation is dive to obsolescence rather than wear and tear Aequired: Thalassines Kataskeves, S.A, of Greece mokes marine equipment. The company has been experiencing losses on its bilge pump product ine for severat yoars. The most recent quarterty contribution format income statement for the bilgo pump product line follows: total general factory overhead or total Purchasing Departiment expenses. Bequired: What is the financial sdvantage (ditadvantage) of dscontruing the bige pump product lane Step by Step Solution
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