Futura Company purchases the $79,000$ starters that it installs in

its standard line of farm tractors from a supplier for the price of

$$10\mathrm{.}90$ 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 $$11\mathrm{.}30$ as shown below:If Futura decides to make the starters, a supervisor would have

to be hired $($at a salary of $$142,200)$ to oversee production.

However, the company has sufficient 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 $$80,000$ per period. Depreciation is due to

obsolescence rather than wear and tear.Required:What is the financial advantage $($disadvantage$)$ of making the

$79,000$ starters instead of buying them from an outside

supplier?