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Sweels Co. Sweets Ca. makes wheels for use in the production of a children's ice cream truck toy. The cost for Sweets fo produce 220,000
Sweels Co. Sweets Ca. makes wheels for use in the production of a children's ice cream truck toy. The cost for Sweets fo produce 220,000 wheels annually are as follows: An outside supplier has offered to sell Sweets similar wheels for $0.90 per wheel. If the wheels are purchased from the outside supplier, $27,000 of annual fixed manufacturing overhead would be avoided and the facilities now being used to make the wheels would be rented to another company for $70,000 per year. If Sweets chooses to buy the wheel from the outside supplier, how would that affect the company's annual net operating income
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