Question 22 2 points ther is used in one of Corporation A's products. The company makes 19.200 units of this item each year. The company's reports the following costs of producing items at this level of activity Per Unit Direct materials 5 1.50 Direct labor $2.50 Variable manufacturing overhead $ 3.60 Supervisor's salary $ 1.30 Depreciation of special equipment $3.00 Allocated general overhead $ 8.30 An outside supplier has offered to produce item and sell it to the company for $17.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fed costs of the entire company of the outside suppliers offer were accepted, only $28.400 of these allocated general overhead costs would be avoided. of management decides to buy item from the outside supplier rather than to continue making the item what would be the annual impact on the company's overall net operating income? Net operating income would decline by 570,740 per year. Net operating income would decline by 5127.120 per year. Net operating income would decline by $42.340 per year, Net operating income would decline by 599.140 per year