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Question 3 2 points Company AA manufactures 21.000 components per year. The manufacturing costs of the components was determined as follows: Direct materials $ 105,000

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Question 3 2 points Company AA manufactures 21.000 components per year. The manufacturing costs of the components was determined as follows: Direct materials $ 105,000 Direct labor 161,000 Variable manufacturing overhead 61,000 Fored manufacturing overhead 81.000 An outside supplier has offered to sell the component for 517. if Co. A purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for 510,100. if Co. A purchases the component from the supplier instead of manufacturing it the effect on operating profits would be a 540.100 Increase 540.000 decrease $19.900 decrease 550.000 increase

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