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The Wheel Division of Frankov Corporation has the capacity for making 111,000 wheel sets per year and regularly sells 88,800 each year on the outside

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The Wheel Division of Frankov Corporation has the capacity for making 111,000 wheel sets per year and regularly sells 88,800 each year on the outside market. The regular sales price is $100 per wheel set, and the variable production cost per unit is $65. The Retail Division of Frankov Corporation currently buys 44,400 wheelsets of the kind made by the Wheel Division) yearly from an outside supplier at a price of $90 per wheel set If the Retail Division were to buy the 44,400 wheelsets it needs annually from the Wheel Division at a transfer price of $87 per wheel set, the change in annual net operating income for the company as a whole would be Multiple Choice $333,000 S888.000 $110,000 in annual net operating income for the company as a whole would be: Multiple Choice $333,000 O $888,000 O $1.110.000 $199,800

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