Acme Company plans to outsource production of a component part that it currently produces in-house. At the budgeted production level of 23,000 units, Acme's per-unit manufacturing costs for the part are as follows: Direct materials Direct labor Variable manufacturing overhead $4.90 $9.50 $10.00 Production supervisor's salary $5.40 Depreciation of specialized equipment $3.80 Other fixed manufacturing overhead $9.00 In lieu of producing the part in-house, Acme can purchase the part from a supplier for $32.70 per unit. If Acme outsources production, the only avoidable fixed cost is the production supervisor's salary. Outsourcing would also free up some capacity that Acme could use to produce other products that would generate an additional contribution margin of $35,000 per year. If Acme outsources production of the component part, what would be the incremental effect on operating income? ($31,700) ($155,900) $(66,700) $(190,900)