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Craylon Corp has two service departments, S1 and 50, and two production departments, The data for April were as follows: Activity si S2 Costs $100,000 $80,000 Fixed Costs $400,000 $500,000 Services provided to: S1 S2 P1 P2 25% 40% 35% 10% 55% 35% P1 P2 One of the algebraic equations in linear form for an activity using the reciprocal method is S2 = 80,000 + 1051 $1=100,000 + .2552 S2 = 80.000 + .3551 S1 = 100,000 +.1052 Question 28 (2.5 points) Sarasota Bicycles has been manufacturing its own wheels for its bikes. The company is currently operating at 1 capacity, and variable manufacturing overhead is charged to production at the rate of 30% of direct labor cost. direct materials and direct labor cost per unit to make the wheels are $3.00 and $3.60 respectively. Normal is 200,000 wheels per year. pre A supplier offers to make the wheels at a price of $8 each. If the bicycle company accepts this offer, all varia manufacturing costs will be eliminated, but the $84,000 of fixed manufacturing overhead currently being the wheels will have to be absorbed by other products. What is the impact on the company's net income The company's net income would decrease $46,000 by purchasing the wheels The company's net income would decrease $46,000 by purchasing the wheels. The company's net income would decrease $64,000 by purchasing the wheels. The company's net income would increase $64,000 by purchasing the wheels