7.) Outdoor Life manufactures snowboards. The cost of making 2,000 sets of bindings last month was as follows: Direct materials Direct Labor Variable overhead Fixed Overhead Total Manufacturing Cost Cost per set $16 $18,000 3,000 3,000 8.000 $32,000 An outside supplier has offered to supply outdoor Life with the bindings for $14 each including shipping costs to its facility. If Outdoor Life accepts the offer it will be able to avoid $3,000 of fixed overhead. In addition if the offer is accepted Outdoor Life will be able to use the freed up facilities to produce another product that will contribute $3,500 to profit per month. Including the opportunity cost, how much will Outdoor Life save each month by accepting the offer from the outside supplier instead of making the bindings if they will need 2,500 sets of bindings next month? A) $3,000 B) $1,500 C) $2,500 D) $1,000