Exercise 13-10 (Algo) Make or Buy Decision [LO13-3] Futura Compary purchases the 73,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.20 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 $10,90 as shown below: If Futura decides to make the starters, a superviso would have to be hired (at a salary of $116,800 ) to oversee production Howiver. the company has sufficient idle tools and machinery such that no new equipment would hove to bo purchosed. The rent charge above is based on spoce utilized in the plant. The total rent on the plant is $87,000 per penlod Depreciation is due to obsolescence rather. than wear and tear. Required: What is the financial advantage (disndvantage) of making the 73.000 starters instead of buying them from an outside supplee