donald Company produces 40,000 hydraulic arms to be used in the manufacturing of its wheel chairs. The average cost per hydraulic arm at this level of activity follows: Variable MOH $4.75 Direct labour $5.60 Direct materials $5.50 Fixed MOH $4.45 Yippy could purchase a comparable hydraulic arm from an outside supplier for $18 per unit. If Yippy Company decides not to make the hydraulic arm, there would be no other use for the production facilities and total fixed factory overhead costs would not change. If Yippy Company decides to continue making the hydraulic arm, how much higher or lower would net income be than if the hydraulic arms are purchased from the outside suppler? Assume that direct labour is a variable cost in this company. Question 12 options: A) $86,000 higher. B) $92,000 lower. C) $276,000 higher. D) $178,000 higher.