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Bryon Industries manufactures 2 0 , 0 0 0 components per year. The manufacturing cost of the components was determined as follows: Direct materials $

Bryon Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows:
Direct materials $100,000
Direct labor $160,000
Variable overhead $60,000
Fixed overhead $80,000
An outside supplier has offered to supply Bryon the component for $17. If Bryon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,000. If Bryon purchases the component from the supplier instead of manufacturing it, the effect on income would be:
Group of answer choices
$70,000 increase
$50,000 decrease
$10,000 decrease
$30,000 increase

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