Futura Company purchases the 70,000 starters that it installs in its standard line of farm tractors from a supplier for

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Futura Company purchases the 70,000 starters that it installs in
its standard line of farm tractors from a supplier for the price of
$12.20 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 $13.50 as shown below:
If Futura decides to make the starters, a supervisor would have
to be hired (at a salary of $133,000) 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 $88,000 per period. Depreciation is due to
obsolescence rather than wear and tear.
Required:
What is the financial advantage (disadvantage) of making the
70,000 starters instead of buying them from an outside
supplier?