Merton$$s production manager suggests purchasing Model $101$ or Model $102$ engines from an outside supplier in order to relieve the capacity problem in the engine assembly department. If Merton decides to pursue this alternative, it will be effectively $$renting$$ capacity: furnishing the necessary materials and engine components, and reimbursing the outside supplier for labor an overhead.

$-$Should the company adopt this alternative? Explain.

$-$If so$,$ What is the maximum rent it should be willing to pay for a machine$-$hour of engine capacity?