Question 15 Company manufactures 18.850 components per year. The manufacturing cost of the components was determined to be as follows Direct materials 5 172.000 Direct labor 350.000 Variable manufacturing overhead 101.000 Fored manufacturing overhead 230,000 8531000 Assume COM could avoid 595.000 of foed manufacturing overhead if it purchases the component from an outside supplier an outside supplier has offered to sell the component for purchases the component from the supplier instead of manufacturing it the effect on income would be a 51.079.400 increase 577.100 increase $771.000 decrease 5462.600 increase