Exerclse 1310 (Algo) Make or Buy Declsion [LO13-3] Futura Company purchases the 79,000 starters that it installs in its standard ine of farm tractors from a supplier for the price of $11.70 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buylng them from an outside supplier. However, the company's chlef engineer is opposed to making the starters because the production cost per unit is $11.80 as shown below. If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $18,500 ) to oversee production. However, the company has sufficlent idle tools and machinery such that no new equlpment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $89,000 per perlod. Depreciation is due to obsolescence rather than wear and tear. Required: What is the financlal advantage (disadvantage) of making the 79,000 starters instead of buying them from an outside supplier