Question 13 Company manufactures 25.000 components per year. The manufacturing costs of the components was determined as follows: Direct materials $ 125.000 Direct labor 165.000 Variable manufacturing overhead 65.000 Pored manufacturing overhead 85.000 An outside supplier has offered to sell the component for $15. If Co. AA purchases the component from the outside supplier, the manufacturing facilities would be unused and could be for $10.500. If Com purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a $30.500 increase 554.500 decrease 59500 decrease 574,500 increase