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Crane Company can produce 100 units of a component part with the following costs: Direct Materials: $18000 Direct Labor: 9500 Variable Overhead: 16000 Fixed Overhead:

Crane Company can produce 100 units of a component part with the following costs:

Direct Materials: $18000

Direct Labor: 9500

Variable Overhead: 16000

Fixed Overhead: 11000

If Crane Company can purchase the units externally for $50000, by what amount will its total costs change?

A. a decrease of $11000

B. an increase of $6500

C. an increase of $8500

D. an increase of $50000

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