CM Company manufactures a component used in the production of one of its main products. The following cost information is available: Direct materials $410 Direct labor (variable) 100 Variable manufacturing overhead 90 Fixed manufacturing overhead 35 A supplier has offered to sell the component to CM for $630 per unit. If CM buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $30,000 annually. o Operating income would decrease by $90,000. o Operating income would decrease by $110,000 Operating income would increase by $120,000. o Operating income would increase by $10,000 CM Company manufactures a component used in the production of one of its main products. The following cost information is available: Direct materials $410 Direct labor (variable) 100 Variable manufacturing overhead 90 Fixed manufacturing overhead 35 A supplier has offered to sell the component to CM for $630 per unit. If CM buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $30,000 annually. o Operating income would decrease by $90,000. o Operating income would decrease by $110,000 Operating income would increase by $120,000. o Operating income would increase by $10,000