Current Attempt in Progress

Bonita Industries produces $5000$ units of part A$12$E$.$ The following costs were incurred for that level of production:

Direct materials

$60000$

Direct labor

$165000$

Variable

$80000$

overhead

Fixed overhead $175000$

If Bonita buys the part from an outside supplier, $$45000$ of the fixed overhead is avoidable.

If the outside supplier offers a unit price of $$73,$ net income will increase $($decrease$)$ by

$$(15000).$

$$145000.$

$$85000.$

$$(60000).$