Nichols Company is planning to purchase a new manufacturing facility in a nearby economic development area offering significant tax incentives. What type of budget will its financial manager have to develop in connection with this purchase?

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: