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Angelo, Inc. is currently producing 100 units of a necessary component part by incurring $30,000 in direct materials, $13,000 in direct labor, $32,000 in variable
Angelo, Inc. is currently producing 100 units of a necessary component part by incurring $30,000 in direct materials, $13,000 in direct labor, $32,000 in variable overhead, and $22,000 in fixed overhead. If Angelo can purchase the units externally for $80,000, by how much would its total costs change?
A : $5,000 increase B : $17,000 increase C : $80,000 increase D : $22,000 decrease
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