Let's Roll, Inc. currently manufactures the wheels that it uses for its in-line skates. The annual costs to manufacture the 140,000 wheels needed each year are as follows:

	Total Cost
Direct material		$	167,000
Direct labor			48,000
Variable overhead			54,000
Fixed overhead			300,000
Total		$	569,000

Wheeling Company has offered to provide Let's Roll with all of its annual wheel needs for $3.40 per wheel. If Let's Roll accepts this offer, 65% of the fixed overhead above could be totally eliminated. Also, Let's Roll would be able to rent out the freed up space and could generate $78,000 of income annually.

Required:
a.	Calculate the total relevant costs of making the wheels. (Omit the "$" sign in your response.)

Total relevant cost of making

$

b.	Calculate the total relevant cost of buying. (Omit the "$" sign in your response.)

Total relevant cost of buying

$

c.	Should Let's Roll, Inc. make or buy the wheels?
	(Click to select)BuyMake