The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 210,000 wheels annually are: Direct materials Direct labor Variable manufecturing overhead Fixed manufacturing overhead $42,000 $63,000 $31.500 $69,000 An outside supplier has offered to sell Talbot similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier. $24.000 of annual fixed overhead could be avoilded and the facilities now being used could be rented to another company for $57.900 per year. Direct labor is a varilable cost If Taibot chooses to buy the wheel from the outside supplier, then annuel net operating income would e supplier, then annual net operating income would O increase by $42.000 O increase by $71100 O increase by $50.400 O decrease by $7.500 O Type here to search