Let's Roll, Inc. currently manufactures the wheels that it uses for its in-line skates. The annual costs to manufacture the 144,000 wheels needed each year are as follows:

Let's Roll, Inc. currently manufactures the wheels that it uses for its in-line skates. The annual costs to manufacture the 144,000 wheels needed each year are as follows: Direct material Direct labor Variable overhead Fixed overhead Total Cost $169,000 49,000 51,000 309,000 Total $578,000 Wheeling Company has offered to provide Let's Roll with all of its annual wheel needs for $2.60 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 $75,000 of income annually. Required: a. Calculate the total relevant costs of making the wheels. (Omit the "$" 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)