Exercise 11-10 (Algo) Make or Buy Decision [LO11-3] Futura Company purchases the 73,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.50 per unit. Due to a reduction in output, the compony now has idle capocity that could be used to produce the starters rather thar buying them from an outside supplier, However, the company's chlef engineer is opposed to making the starters because the production cost per unit is $11:99 as shown below If Futura decides to make the starters, a supervisor woudd have to be hired (at a salary of $138,700) to oversee production. Hewever, the company has sufficient ide tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilied in the plant The total rent on the plant is $83,000 per period. Depreciation is due to obsolescence rather than weat and tear. Required: What is the finandial advantage (disadvanthge) of making the 73000 starters insted of buying them from an outside supplier