Moonbeam Industries must decide whether to make or buy some of its components. The costs of producing 175,000 of the ring casing's for the Mood Rings are as follows: Direct Materials $15,000 Direct Labor 5,000 Variable Overhead 6,000 Fixed Overhead 9,000 The company has an opportunity to purchase the ring casings $0.20 per unit, which would eliminate all variable costs, and $2,000 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the ring casings Select one: a. an increase in net income of $5,500 b. an increase in net income of $7,000 c. a decrease in net income of $7,000 d. a decrease in net income of $3,500