Crane Industries must decide whether to make-or-buy some of its components. The costs of producing 143500 battery packs for its product are as follows: Direct Materials Direct Labor Variable overhead Fixed overhead $12300 $4100 $4920 $7380 D The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $1640 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs? O A decrease in net income of $2870. O An increase in net income of $5740. An increase in net income of $4510: An increase in net income of $2870. C

Crane Industries must decide whether to make-or-buy some of its components. The costs of producing 143500 battery packs for its product are as follows: The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $1640 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs? A decrease in net income of $2870. An increase in net income of $5740, An increase in net income of \$4510: An increase in net income of $2870