Company makes 30,000 motors to be used in the productions of its power lawn mowers. Themanufacturing cost per motor at this level of activity is as follows:

Direct materials $9.50

Direct labor $8.60

Variable manufacturing overhead $3.75

Fixed manufacturing overhead $4.35

This motor has recently become available from an outside supplier for $25 per motor. If Company decides not tomake the motors, none of the fixed manufacturing overhead would be avoidable and there would be no otheruse for the facilities. If Company decides to continue making the motor, how much higher or lower will thecompany's net operating income be than if the motors are purchased from the outside supplier?

A. $130,500 higher.

B. $94,500 higher.

C. $207,000 higher.

D. $36,000 lower.