#46

Sheffield Corp. incurred the following costs to produce 100000 units: Variable costs $677000 Fixed costs 900000 An outside supplier has offered to make the item at $5.30 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $162000. The net increase (decrease) in the net income as a result of accepting the supplier's offer is O $(15000). $208000. O $309000. O $698000