A company makes 60,000 units of part 14 each year. The company's Accounting Department reports the following costs of producing the part at the level of activity Variable Manufacturing Costs $5 per unit Supervisor's Salary $2 per unit Depreciation for Special Equipment $2 per unit Allocated general overhead 3 per unit An outside supplier has offered to produce this part and sell it to the company for $10 each. If this offer is accepted, the supervisor's salary and all of the variable costs will be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. I the outside supplier's offer were accepted, only half of these allocated general overhead costs would be avoided. I management decided to buy part 4 from the outside supplier rather than to continue making the part what would be the annual impact on the company's overall net operating income? Net operating income would decline by $60,000 per year. Net operating income would decline by $90.000 per year None of these answers is correct Net operating income would increase by $60,000 per year Net operating income would increase by 190,000 per year