Concept Check Question 7-13 Taser Industries must decide whether to make or buy some of its components. The costs of producing 175,000 battery packs for its product are as follows: Direct Materials $15,000 Direct Labor Variable overhead $5,000 $6,000 $9,000 Fixed overhead The company has 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? O An increase in net income of $3,500. O An increase in net income of $7,000. O A decrease in net income of $3,500. O An increase in net income of $5,500. Click if you would like to Show Work for this question: Open Show Work