The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 250,000 wheels annually are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $50,000 $75,000 $37,500 $75,000 An outside suppler has offered to sell Talbot similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier $30,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $82,500 per year. Direct labor is a varlable cost At what purchase price for the wheels would Talbot be indifferent between making or buying the wheels? (Round your answer to 2 decimal places.) O so.9s O $1.05 O $0.77 O $1.10