A company currently manufactures Part A$,$ a part in the

company's main product, Product B$.$ Next year, the company

could purchase $100,000$ Part As for $$45$ each. The company's

production of Part A costs per unit are shown below.

If the company purchases Part A from the outside supplier, all

variable production costs would be eliminated and $70\%$ of the

fixed production costs would be eliminated. Management has

found that the space used for Part A could be used to produce a

new product that would generate $$300,000$ in net income each

year. If the company purchases Part A from the outside supplier,

net income would decrease by

$$30,000$

$$330,000$

$$270,000$

$$630,000$A company currently manufactures Part A$,$ a part in the company's main product, Product B$.$ Next year, the company could purchase $100,000$ Part As for $$45$ each. The company's production of Part A costs per unit are shown below.

Direct materials $$17\mathrm{.}00$

Direct labor $16\mathrm{.}00$

Variable manufacturing overhead $4\mathrm{.}50$

Fixed manufacturing overhead $6\mathrm{.}00$

Total cost per unit $$43\mathrm{.}50$

If the company purchases Part A from the outside supplier, all variable production costs would be eliminated and $70\%$ of the fixed production costs would be eliminated. Management has found that the space used for Part A could be used to produce a new product that would generate $$300,000$ in net income each year. If the company purchases Part A from the outside supplier, net income would decrease by

Group of answer choices

$$30,000$

$$330,000$

$$270,000$

$$630,000$