Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as follows: $150,000 240,000 90,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 120,000 $600,000 Assume Ortega Industries could avoid $40,000 of fixed manufacturing overhead if it purchases the component from an outside supplier. An outside supplier has offered to sell the component to Ortega for $34. If Ortega purchases the component from the supplier instead of manufacturing it, the effect on income would be a: A. $60,000 increase B. $10,000 increase OC. $100,000 decrease O D. $140,000 increase