Harrisburg, Inc. makes a component used in the production of its main product. Details of the component are:

Volume	1,200 units/month
Variable cost per unit	$11.50/unit
Fixed costs	$10,000/month

Another firm has offered to supply Harrisburg with the component for $16 per unit. If Harrisburgs fixed costs are unavoidable and the firm will not be able to use the excess capacity, what is the effect on monthly operating income if Harrisburg decides to outsource?

	A.	Increase by $5,400
	B.	Decrease by $10,000
	C.	Increase by $10,000
	D.	Decrease by $5,400