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Bonita Industries produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $45000 Direct labor 150000 Variable

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Bonita Industries produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $45000 Direct labor 150000 Variable overhead 65000 Fixed overhead 175000 If Bonita buys the part from an outside supplier, $35000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $62, net income will increase (decrease) by O $(15000). $(50000). $100000 $85000

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