equipment

Product$-$level engine production supervisor's salary $,$$$2,700$ per month

Annual facility$-$level utilities

U$-$RIDE is currently operating profitably producing and selling $2,700$ engines a year using $80\%$ of its manufacturing capacity. Which of the following is true?

Multiple Choice

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Buying the units would increase profitability by $$66$ per unit.

U$-$RIDE should make the engines for cost savings of $$39$ per unit.

U$-$RIDE has avoidable costs of greater than $$249$ per unit and should therefore buy the engines.

Buying the units would increase U$-$RIDE's cost by $$27$ per unit.