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A company produces 200 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuits in-house but is considering

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A company produces 200 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuits in-house but is considering outsourcing the circuits at a contract cost of $28 each. Currently, the cost of producing circuits in-house includes variable costs of $24 per circuit and fixed costs of $7,000 per month. Assume the company could cut fixed costs in half by outsourcing and that there is no alterative use for the facilities presently being used to make circuits. If the company outsources, operating income will O A. decrease by $800 O B. decrease by $2,700 OC. increase by $2,700 OD. stay the same 600 Scor

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