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Fornelli, Inc. can produce 100 units of a component part with the following costs: Direct materials $30,000 Direct labor 13,000 Variable overhead 32,000 Fixed overhead

Fornelli, Inc. can produce 100 units of a component part with the following costs: Direct materials $30,000 Direct labor 13,000 Variable overhead 32,000 Fixed overhead 22,000 If Fornelli, Inc. can purchase the units externally for $80,000, by what amount will its total costs change? An increase of $5,000. An increase of $17,000. An increase of $22,000. An increase of $80,000.

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