Harrisburg, Inc. makes a component used in the production of its main product. The following cost information is available: Direct materials $420/unit Direct labor 100/unit Variable manufacturing overhead 90/unit Fixed manufacturing overhead 30/unit A supplier has offered to sell the component to Harrisburg for $650 per unit. If Harrisburg buys the component from the supplier, the space currently used to make the component can be used to manufacture a product that would generate a contribution margin of $10,000 annually. If Harrisburg needs 3,000 units of the components annually and the fixed manufacturing overhead is unavoidable, what would the effect on the firm's operating income be if Harrisburg outsources? Operating income would increase by $120,000 Operating income would increase by $10,000 Operating income would decrease by $110,000 D Operating income would decrease by $10,000 B