Question 22 (2.5 points) Sarasota Bicycles has been manufacturing its own wheels for its bikes. The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 30% of direct labor cost. The direct materials and direct fabor cost per unit to make the wheels are $3.00 and $3.60 respectively. Normal production is 200,000 wheels per year. A supplier offers to make the wheels at a price of $8 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $84,000 of fixed manufacturing overhead currently being charged to the wheels will have to be absorbed by other products. What is the impact on the company's net income O The company's net income would increase $64,000 by purchasing the wheels. O The company's net income would decrease $46,000 by purchasing the wheels. O The company's net income would decrease $64,000 by purchasing the wheels. O The company's net income would decrease $46,000 by purchasing the wheels