Futura Company purchases 65,000 starters from a supplier at $11.50 per unit that it installs in farm tractors. Due to a reduction in output, the company now has enough idle capacity to produce the starters rather than buying them from the supplier. However, the companys chief engineer is opposed to making the starters because the production cost per unit is $12.40, as shown below: Per Unit Total Direct materials $ 5.00 Direct labor 3.50 Supervision 1.90 $ 123,500 Depreciation 1.10 $ 71,500 Variable manufacturing overhead 0.50 Rent 0.40 $ 26,000 Total product cost $ 12.40 If Futura decides to make the starters, a supervisor would be hired (at a salary of $123,500) to oversee production. However, the company has sufficient idle tools and machinery