2. (Chapter 12) Turnbull Company has traditionally made a subcomponent of its major produ Annual production of 40,000 subcomponents results in the following costs: Direct materials........... $300,000 Direct labor.................. $240,000 Variable overhead.............. $200,000 Fixed overhead............ $150,000 890000 12.25 Turnbull has received an offer from an outside supplier who is willing to provide the 40,000 units each year at a price of $30 per unit. Turnbull knows that the facilities now being used to manufacture the subcomponent could be rented to another company for $100,000 per year if the subcomponent were purchased from the outside supplier. Otherwise, there would be no effect of this decision on the total fixed overhead of the company. If Turnbull decides to purchase the subcomponent from the outside supplier, what would be the impact on the company's net operating income for the year? a) $150,000 higher b) $360,000 lower c) $150,000 lower d) $360,000 higher