I usage. Levy purchases the engines needed far its tractors from to Engines and watson Company. The Johnsan engine has a price of $1,000. The Watson engne is $900 per unt. Levy produces and sets 22,000 tractors Of the 22,000 engines needed for the tractors, 4,000 are purchased trom Johnson Engnes, and 18,000 are purchased from Watson Company. The production manager, Jamie Murnay, prefers the Johnson engine. Homever, Jan Booth, purchasing manager maintains that the price dfference is too great to buy more than the 4,000 units ourrently purchased. Boath also arrts to maintain s signifikant connection witn the Ohrson source u in case the. lens experitie snurt" cannot Tupply the needed untities, 2amue, sources. Jomnson Frank Wallece, the controller, has decided to use activity costing to resolve the issue. The toowing nctiwity cost and suppler data have Activity Replacing engines* Expediting orders Repairing engines * All units are tested after assembly, and some are rejected because of engine failure. The faied engines are ramoved and replaced with the supplier replacing any failed engine. The replaced engine is retested bifore being saks. Engine fellure often causes colateral damage, and other parts often need to be replaced Due to late or failed delivery of engines. $80O,000 1,000,000 1,800,00