Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 4 weeks, and the lead time for receiving the materials ordered from its wholesaler is 2 weeks. Weekly demand is normally distributed, with a mean of 150 units and a standard deviation of 30 units. Refer to the standard normal tableLOADING... for z-values.

An outside supplier has offered to sell talbot similar wheels for $1.25 per wheel. if the wheels are purchased from the outside supplier, $15,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $45,000 per year. direct labor is a variable cost. if talbot chooses to buy the wheel from the outside supplier, then annual net operating income would: