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(7). (8). GOGO Golf Carts currently produces its own electric motors. Electco has offered to sell the electric motors to GOGO at a price of

(7).

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(8).

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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: $175 Unit-level material and labo Facility-level depreciation of manufacturing equip. $12,000/year $24,000/year Product-level supervisors salary 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? O GoGo should buy the engines for cost savings of $113 per unit. O GoGo should continue producing the engines. O GoGo has relevant costs of greater than $30o a unit and should buy O GoGo will save $126.ooo by producing the engines

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