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Current production information follows: Unit-level material and labor Facility-level depreciation of...

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Accounting

Current production information follows:
Unit-level material and labor
Facility-level depreciation of manufacturing equipment
Product-level engine production supervisor's salary
Annual facility-level utilities
$240
$6,300/month
$3,300/month
$21,500
U-RIDE is currently operating profitably producing and selling 3,300 engines a year using 80% of its manufacturing capacity. Which of the following is true?
Multiple Choice
U-RIDE should make the engines for cost savings of $51 per unit.
Buying the units would increase U-RIDE's cost by $39 per unit.
U-RIDE has avoidable costs of greater than $291 per unit and should therefore buy the engines.
Buying the units would increase profitability by $90 per unit.
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