Damon Industries manufactures 16,000 components per year. The manufacturing cost of the components was determined as follows: $134 000 21,500 61000 81,000 Direct materials Direct labor Fhoed manufacturing overhead An outside supp er has offere to se the component for S 5. amon purchases the component rom the ou so e supp er, he manufacturing acil tes would be unui from the supplier Instoad of manufacturing It, tho effect on Incom an cou d be ente out or ar on our ses e component e would be: O a $72,800 incrcaso. O $15800 decrease. O a $m,800 decrease O n$35.200 increase The Arthur Company manufactures kitchen utens ls. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 18,000 utensils at S0.80 each. Arthur sells its utensils wholesalc for $0.90 each; the average cost per unit is $0.84, of which $0.11 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits? $1080 O s1260 S720. $1,800