A company produces 500 microwave ovens permonth, each of which includes one electrical circuit. The company currently manufactures the circuitin-house but is considering outsourcing the circuits at a contract cost of$28 each.Currently, the cost of producing circuitsin-house includes variable costs of$24 per circuit and fixed costs of$6,000 per month. Assume the company could not reduce any fixed costs by outsourcing and that there is no alternative use for the facilities presently being used to make circuits. If the companyoutsources, operating income will________.

A. stay the same B. decrease by$2,000 C. increase by$14,000 D. decrease by$12,000