WILL RATE

Fiture Compary purchases the 50,000 starters that it instazs in is ctandard line of farto tiectars from a supplior for the price of sio.60 per unt Due to a feduction in output, the company now hos lale copocity that could be used to produce the starters rather than boying them trom an outside suppler Howover the companys chief engineer is opposed to making the stanters beceuse the production cost per unt is $1070 as shown below If Futurn decides to make the starters, a supervisor would have to be hired fat a salary of $90,000 f to oversee production Howevec the company has sufficient idle tools and mochinecy such that no new equ pment would hove to be purchased The rent charge above is based on spoce utilied in the plant Tho total rent on the plant is $82000 per penod Dopreciabion is due to obsolescence father than wear and lear Required: Whot is the financial odvantage idisadvantagej of making the 50000 starters instead of buying them from an outsioe suppiler