Question 13 (2.5 points) RGM Inc. makes 50,000 motors per year to be used in the production of its snow blowers. The cost per motor at this level of activity is as follows: Direct materials $20 Direct labor 18 Variable manufacturing overhead 10 Fixed manufacturing overhead 8 An outside supplier has offered to sell motors to RGM for $52 per motor. If RGM stops making the motors. 1/4 of the fixed manufacturing overhead would be avoidable. In addition, the facilities being used to make motors could be rented to another company for $40,000 per year. If RGM purchases the motors from the supplier, by how much will net income change? obol $160,000 increase $100,000 decrease O$140,000 increase $60,000 decrease