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Exercise 77-7U (Aigo) make or buy Uecision [LU7-3] Futura Company purchases the 69,000 starters that...

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Exercise 77-7U (Aigo) make or buy Uecision [LU7-3] Futura Company purchases the 69,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.40 per unit. Due to a reduction in output, the company now has idle capacity thot could be used to produce the starters rather than burying them from an outside suppller. However, the company's chitef engineer is coposed to making the starters because the production cost per unit is $12.60 as shown below: If Eutura decides to make the staiters, a supedvisor would hive to be hired (at a salary of $117300 ) to oversee production. Howirver, the company has sufficient idle tools and mactinery such that no new equipment would hove to be purchased, The rent charge above than weat and tear Required: What is the financlat odvartage (dinadvamage) of making the egogo starteis instead of buyng then from an outside supph ed

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