he 9. Damon Industries manufactures 20,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials 100,000 Direct labor 160,000 Variable manufacturing overhead 60,000 Fixed manufacturing overhead 80,000 An outside supplier has offered to sell the component for $17. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a: A. $70,000 increase. B. $50,000 decrease. C. $10,000 decrease. D. $30,000 increase.