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Fastec Automobile Company fabricates automobiles. Each vehicle includes one transfer case, which is currently made in-house. Details of the transfer case fabrication are as follows:

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Fastec Automobile Company fabricates automobiles. Each vehicle includes one transfer case, which is currently made in-house. Details of the transfer case fabrication are as follows: Volume Variable cost per unit Fixed costs 800 units per month $8 per unit $15,000 per month A Korean factory has offered to supply Fastec with ready-made units for a price of $14 per transfer case. Assume that Fastec's fixed costs are unavoidable, but that Fastec could use the vacated production facilities to earn an additional $9,500 of profit per month. If Fastec decides to outsource, monthly operating income will O A. decrease by $27,100 O B. decrease by $15,000 O C. increase by $9,500 OD. increase by $4,700

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