On December 31, before adjusting entries, Accounts Receivable had a debit balance of $100,000, and the Allowance for Doubtful Accounts had a credit balance of $3,000. Credit sales for the year were $800,000. If credit losses are estimated at 1% of credit sales:

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: