Down hill all the way, inc. produces bicycles. in its current manufacturing environment, down hill makes all of the wheels used in production. down hill’s annual costs related to the production of 100,000 wheels are as follows: direct materials $30,000 direct labor $50,000 variable overhead $20,000 fixed overhead $70,000 an outside supplier has offered to sell down hill 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 new facilities now being used could be rented to another company for $45,000 per year. what is the highest price that down hill could pay the outside supplier for the wheel and be economically indifferent between making or buying the wheels?

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?