$2.$ Merton's production manager suggests purchasing Model $101$ or Model $102$ engines from an eutside supplier in order to relieve the capacity problem in the engine assembly department.

If Merton decides to pursue this alternative, it will be

effectively "renting" capacity: furnishing the necessary materials and engine components, and reimbursing the outside supplier for labor and overhead. Should the company adopt this alternative? If so$,$ what is the maximum rent it should be willing to pay for a machine$-$hour of engine assembly capacity? What is the maximum number of machine$-$hours it should rent?