q-10.

Due by 1145pm est. usa.

Megaphone Industries manufactures 15,000 components per year as one part of its production activities.

The costs to manufacture the part are as follows:

Direct materials	$150,000
Direct labor	$240,000
Variable manufacturing overhead	$90,000
Fixed manufacturing overhead (allocated common costs)	$120,000
Total costs	$600,000

• If the component is purchased,a part of the manufacturingfacility can be rented to another business for $5,000.
• An outside supplier has offered to sell the component to Galaxy for $34 each.

If Megaphone purchases the component instead of manufacturing it, the effect on its net income would be a...