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DCR Ltd . manufactures part XJ 1 4 L used in several of its engine models. Monthly per unit production costs for 1 , 0

DCR Ltd. manufactures part XJ14L used in several of its engine models. Monthly per unit production costs for 1,000 units are provided in the table below.
It is estimated that 10% of the fixed overhead costs will no longer be incurred if the company buys XJ14L from an outside supplier. The cost to purchase XJ14L from the supplier is $85 per unit. If DCR purchases 1,000xJ14L parts from the outside supplier per month, its monthly net income will
a. increase by $13,000.
b. increase by $15,000.
c. decrease by $5,000.
d. decrease by $3,000.
\table[[Direct materials,$40.00
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