The Macy's Cycle Company (MCC) makes specialized triathlon bicycles. They actually make their own wheels that they use to produce these bicycles. MCC's annual costs to produce 160,000 wheels are: $32.000 Direct materials $48.000 Direct labor Variable manufecturing overhead $24.000 Fxed manufacturing overhead $64.000 supplier who sells a lot of round things, include similar wheels that MCC could use instead of the ones it is current Wheelhouse aking. Wheelhouse has offered to sell MCC these similar wheels for rented to another company $0.80 per wheel. If the wheels are purchased from Wheelhouse, $19,000 of annual fixed overhead could be avoided. The facilities now being used for manufacturing these wheels could b for $48.200 per year. Direct labor sa variable cost If MCC chooses to buy the wheel from Wheelhouse, then annual net operating income would: Oincrease by $32,000 increase by $50,800 increase by $43,200 O decrease by $5,000