Damon Industries manufactures 24,000 components per year. The manufacturing costs of the components was determined as follows: 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $120,000 164,000 64,000 84,000 An outside supplier has offered to sell the component for $16. if Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10.400. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a Multiple Choice Multiple Choice $89,600 increase $25,800 decroute $46,400 increase $37600 decrease