Item 151 is used in one of Policy Corporation's products. The company makes 18,800 units of this item each year. The company's Accounting Department reports the following costs of producing tem 151 at this level of activity Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $1.40 $2.40 $3.50 $1.20 32.90 $8.70 An outside supplier has offered to produce item 151 and sell it to the company for $16.60 each. If this offer is accepted the supervisor's salary and at of the variable costs, including direct labor can be wvoided. The special equipment used to make the item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fed costs of the entire company of the outside supplier's offer were accepted, only $27600 of these allocated general overhead costs would be avoided. If management decides to buy hom 151 from the outside supplier rather than to continue making the item, what would be the annual impact on the company's overal net operating income? Me Choice Net operating income would decine by $3.000 per you. Not cering income would decline by 565.600 per year a Not operating income would dece by 9.200 per year O et operating income wo decine by $124.600 per year