Multiple Choice Question 80 Waterway Industries produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials Direct labor Variable overhead Fixed overhead 65000 170000 85000 175000 If Waterway buys the part from an outside supplier, $10000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $77, net income will increase (decrease) by $85000. s(65000). s(55000). $200000