7. 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.
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