Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $ 75,000 Direct labor 120,000 Variable manufacturing overhead 45,000 Fixed manufacturing overhead 60,000 Total $300,000 An outside supplier has offered to sell the component for $6.75 What is the effect on income if Concierge Industries purchases the component from the outside supplier? $30,000 increase $270,000 decrease $30,000 decrease $270,000 increase