5000 decrease 50500 increase 70000 increase 50000 increase 5

$5,000 decrease

$50,500 increase

$70,000 increase

$50,000 increase

Solution

Calculation of cost from outside supplier:

Cost per wheel = 0.80

Fixed ovreheads = -25000 per year

Gain by rent = 55000 per year

Total cost from outside per year = 30000+0.80 n where n = no of units produced

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As n=200000

Total cost = 30000+160000=190000

As picture is missing unable to do further.