Acme Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 42,000 parts is $100,000, which includes fixed costs of $40,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $1 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Acme outsources, what will be the effect on operating income? Select one: A. decrease of $18,000 B. increase of $42,000 O C. decrease of $8,000 D. increase of $16,000 E. None of the above. Wilson Company is deciding whether to continue to manufacture a component or to buy the component from a supplier. Which of the following is relevant to this decision? Select one: A. the cost of the equipment that is currently being used to manufacture the component O B. the potential uses of the facilities that are currently used to manufacture the component C. the insurance on the manufacturing facility that will continue regardless of the decision D. fixed costs that do not differ between the alternatives E. None of the above. Kennedy Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier. Which of the following is irrelevant with respect to this decision? Select one: A. the outside supplier's ability to deliver the component on a timely basis B. the alternative uses of the facilities currently being used to manufacture the component C. the unavoidable fixed manufacturing costs associated with the manufacture of the component D. the quality of the component purchased from the outside supplier O E. None of the above