Blazer Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $75,000 120,000 45,000 60.000 $300.000 An outside supplier has offered to sell the component for $6.50. Fixed cost will remain the same if the component is purchased from an outside supplier Blazer Industries can rent its unused manufacturing facilities for $50,000 fit purchases the component from the outside supplier. What will be the effect on income if Blazer purchases the component from the outside supplier? a. $30,000 increase b. $165,000 decrease c. $90,000 decrease d. $20,000 decrease