The Engine Division has an annual production capacity of 1,000 units.Their incremental (variable) cost of producing each engine is $240 and fixed costs are $70.If the Engine Division does not produce the 1,000 engines, the equipment and facilities would be used for other production operations that would result in annual cash-operating savings of $60,000.Should the Assembly Division purchase from the external supplier?Why?

A) No. Because if the engines are purchased from the external supplier, the net cost to the company as a whole will be $40,000.

B) No. Because if the engines are purchased from an external supplier, the net cost to the company as a whole will be $20,000.

C) Yes. Because if the engines are purchased from the external supplier, the net benefit to the company as a whole will be $40,000.

D) Yes. Because if the engines are purchased from the external supplier, the net benefit to the company as a whole will be $20,000.