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Carver Company manufactures a oomponent used in the production of one of its main products. The following cost information is available Direct materials $410 Direct

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Carver Company manufactures a oomponent used in the production of one of its main products. The following cost information is available Direct materials $410 Direct labor (variable) 110 Variable manufacturing overhead 80 Fixed manufacturing overhead 35 A supplier has offered to sell the component to Carver for $640 per unit. If Carver buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $20,000 annually. Assuming that Carver needs 3,000 components annualy and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income f Carver outsources? OA Operating income would decrease by $20,000. O B. Operaing income would decrease by $100,000. O C. Operating income would increase by $120,000. O D. Operating income would increase by $20,000

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