Help Save & Exit Submit 1 Check my work For many years. Futura Company has purchased the starters that it installs in its standard line of farm tractors Due to a reduction in output of some of its products, the company has die capacity that could be used to produce the starters. The chief engineer has recommended against this move, however, pointing out that the cost to produce the starters would be greater than the current 51260 per unit purchase price ants etlook Direct materials Direct Isbour Supervision Depreciation Variable manufacturing overhead Hent total production cost Por Total 54.65 4.05 2.500.000 1.50 0.10 1, A supervisor would have to be hired to oversee production of the starters. However, the company has sufficient idle tools and machinery that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The totalrent on the plant is $148,000 per period. Depreciation is due to obsolescence rather than wear and tear, Required: Prepare computations to show the dollar advantage or disadvantage per period of making the starters (Do not round Intermediate colculations.) w Proy 1 of 4 !!! Next >