Quiz 2(Compatibility Mode Q Search in Document Home Insort DosignLayout Referoncos Mailings Roviow Viow Times New Ro . 12 , A-Ar A. AP :-- Paste Heading 1 Strong Subtitle Note Level 2 Styles Pane Question #1 Boston Beer Company prints the labels for all of its beer bottles. Boston Beers costs to produce 1,000,000 labels annually are: produce L00 Direct materials Direct labor Variable Fixed overhead70,000 30,000 dS50,000 $20,000 An outside supplier has offered to print Boston Beer's labels for 13 cents per label. If the labels are purchased from the outside supplier, S15,000 of annual ixed overhead eould be avoided and the space now being used for printing could be rented to another company for $45,000 per year What is the change in net annual operating income if Boston Beer chooses to buy the labels from the outside supplier and rents the available space? Should Boston Beer proceed with this offer? (Ignore the impact of selling any of Boston's printing equipment.) 128 Words English (US) 100% Page 1 of 1