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RelyaTech Corporation makes 37,000 tiny wheels to be used in the production of its Beautiful Product. The average cost per tiny wheel at this level

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RelyaTech Corporation makes 37,000 tiny wheels to be used in the production of its Beautiful Product. The average cost per tiny wheel at this level of activity is: (iD* 62304) An outside manufacturer, called GreatWheel, recently began producing a comparable tiny wheel that could be used in the Beautiful Product. The price offered to RelyaTech Corporation to supply them with this tiny wheel is $24.25. If RelyaTech Corporation decides not to make the wheels, there would be no other use for the production facilities and none of the flixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. Q) What would be the annual financial advantage (disadvantage) for Relyarech as a result of continuing to make the wheels rather than buying them from the outside supplier? Multiple Choice $223,850 $94,350

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