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 equipment $12,00/yr

product-level supervisor's salary $24,000/yr

annual facility-level utilities $1,500

GOGO is currently operating profitibility producing 2,000 engines a year. GOGO maintains worker loyalty by offering employees lifetie employment. Which of the following is true?

a.GOGO should buy the engines for cost saving 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.

please show why the other answers are incorrect, thanks!