The Sables Company understates depreciation by $400 and records the $300 purchase of office supplies on credit with this journal entry: Office Supplies $300 Unearned Revenue $300 Indicate the effect of the errors on Total Assets and Working Capital, respectively: Select one:

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: