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Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of \( \$ 11.80 \) 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 \( \$ 11.80 \) as shown below. If Futura decides to make the starters, a supervisor would have to be hired lat a salary

Futura Company purchases the 71,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.80 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 $11.80 as shown below. If Futura decides to make the starters, a supervisor would have to be hired lat a salary