CAL T2Z.Frank Industries manufactures 200,000 components per vear. The manufacturing costo components was determined as follows: Direct materials Direct labor $200,000 320,000 120,000 Variable manufacturing overhead Fixed manufacturing overhead 160,000 An outside supplier has offered to sell the component for $3.40. If Frank purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $20,000. Required: a. If Frank purchases the component from the supplier instead of manufacturing it, the effect on income would be: b. What is the maximum price Frank would be willing to pay the outside supplier