GOGO Golf Carts currently produces its own electric motors. Electco has offered to sell the electric motors to GOGO at a price of $300 each. GOGO's current production information for the motors follows: Unit-level material and labor $175 Facility-level depreciation of manufacturing equip. $12,000/year Product-level supervisor's salary $24,000/year Annual facility-level utilities $1,500 GOGO is currently operating profitably producing 2,000 engines a year. GOGO maintains worker loyalty by offering employees lifetime employment. Which of the following is true?
a. GOGO should buy the engines for cost savings of $113 per unit.
b. GOGO should continue producing the engines.
c. GOGO has relevant costs of greater than $300 a unit and should buy.
d. GOGO will save $126,000 by producing the engines.