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Concept Check Question 7-13 Taser Industries must decide whether to make or buy some of its components. The costs of producing 175 Direct Materials $15,000

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Concept Check Question 7-13 Taser Industries must decide whether to make or buy some of its components. The costs of producing 175 Direct Materials $15,000 Direct Labor Variable overhead $6,000 Fixed overhead $9,000 ,000 battery packs for its product are as follows: $5,000 The company hes an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2,000 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs? An increase in net income of $3,500. A decrease in net income of $3,s00. An increase in net income of $5,500. An increase in net income of $7,000

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