Exercise $13-10($Algo$)$ Make or Buy Decision $[$LO$13-3]$

Futura Company purchases the $70,000$ starters that it installs in its standard line of farm tractors from a supplier for the price of $$10\mathrm{.}00$ per unit. The company is looking at making the product instead of buying from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $$11\mathrm{.}10$ as shown below:

$\backslash$table$[[,$Per Unit$],[$Direct materials,$$4\mathrm{.}00$