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U-RIDE, Inc. currently produces the electric engines that are used in golf carts made and sold by the Company. Electco has offered to sell the

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U-RIDE, Inc. currently produces the electric engines that are used in golf carts made and sold by the Company. Electco has offered to sell the electric engines to U-RIDE at a price of $249 each. Current production Information follows: Unit-level material and labor Facility-level depreciation of manufacturing equip. Product-level engine production supervisor's salary Annual facility-level utilities 210 $ 5,700/month $ 2,700/month $18,500 Buying the engines will free up manufacturing capacity that could be used to make a new economy line golf cart that would produce an additional $78,300 profit per year. U-RIDE is currently operating profitably producing and selling 2,700 engines annually. Based on this information, which of the following is true? Multiple Choice The $78,300 is not relevant because it is an estimate. Buying the units would increase U-RIDE's cost by $27 per unit. U-RIDE has avoidable costs of less than $249 per unit and should therefore buy engines. The cost of buying the engines is $2 per unit less than the relevant cost of making the units

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