Question 25 (2 points) Walsh Automobile Company fabricates automobiles. Each vehicle includes one airflow sensor, which is currently made in-house. Details of the airflow sensor fabrication are as follows: units per Volume 900month Variable cost per unit $8per unit Fixed costs $14,000 per month A Japanese factory has offered to supply Walsh with ready-made units for a cost of $15 per sensor. Assume that Walsh's fixed costs could be reduced by $4000 if it outsources and that Walsh will not be able to use the excess capacity in any profitable manner. If Walsh decides to outsource, monthly operating income will A) decrease by $2300 B) increase by $14,000 C) decrease by $14,000 D) increase by $7200