Fruit Basket Company manufactures fruit baskets. The basket component, not including the fruit, is made in-house. Details of the baskets are as follows: units per Volume 800lmonth Variable cost per Junit $7 per unit Fixed costs $16,000 per month A foreign factory has offered to supply Fruit Basket Company with ready-made baskets for a price of $12 per basket. Assume that Fruit Basket Company's fixed costs are unavoidable, but that Fruit Basket Company could use the vacated production facilities to earn an additional $9500 of profit per month. If Fruit Basket Company decides to outsource, monthly operating income will increase by O $9500 O $16,000 O $5500 O $24,700