10. Damon Industries manufactures 20,000 components per year. The manufacturing costo components was determined as follows: Direct materials $100,000 160,000 Direct labor Variable manufacturing overhead 60,000 Fixed manufacturing overhead 80,000 An outside supplier has offered to sell the component for $17. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on income would be: 00012 A. a $70,000 increase. B. a $50,000 decrease. C. a $10,000 decrease. D. a $30,000 increase