#9

Oriole Company produces 5000 units of part A12E. The following costs were incurred at that level of production: Direct materials $ 53000 Direct labor 155000 Variable overhead 81000 Fixed overhead 176000 If Oriole buys the part from an outside supplier, $53000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $72, net income will increase (decrease) by $(18000). O $74000. $171000). $131000