Make or Buy Decisions in Business: Alexander Vincent Industries (AVI) manufactures 20,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 100,000 160,000 60,000 80,000 An outside supplier has offered to sell AVI the component for $17. If Alex Swain purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,000. If Alex Swain purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a: A) $70,000 increase. (B) a $50,000 decrease (C) a $10,000 decrease (D) a $10,000 increase Explain your answer and your recommendations