Ch 11 Homework He 07 5 Futura Company purchases the 72000 starters that it instalis 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 that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $11.30 as shown below 14.28 pot Total Directorato Director Supervision Depreciation Variable manufacturing or Hent Total product cost Per at $5.00 3.00 1. 1.00 0.40 0. 530 $ 123,200 177.00 $ 23,100 if Futura decides to make the starters, a supervisor would have to be hired at a salary of $123.200) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total tent on the plant is $84000 per period. Depreciations due to obsolescence other than wear and tear Required: What is the financial advantage (disadvantage) of making the 77000 starters instead of buying them from an outside supplier