Futura Company purchases the 69,000 starters that it installs in its standard line of farm tractors from a supplier for the price of$11.40 per unit. Due to a reduction in output. the company now has idle capacity that could be used to produce the starters ratherthan 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 $12.00 as shown below: Per Unit Total Direct materials $ 5.82) Direct labor 2.89 Supervision 1.89 $ 124, 26-8 Depreciation 1.38 $ 89,763 Variable manufacturing overhead 6.69 Rent 9.59 $ 34,533 Total product cost $ 1239 If Futura decides to make the starters, a supervisor would have to be hired [at a salary of $124,200) to oversee production. However. the company has sufcient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $86000 per period. Depreciation is due to obsolescence rather than wear and tear. Required: I|Nhat is the financial advantage {disadvantage} of making the 69,000 starters instead of buying them from an outside supplier? inancial advantage _