QUESTION 6 Galaxy Industries manufactures 15.000 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials $150,000 Direct labor 240,000 Variable manufacturing overhead Total $480.000 90.000 Assume all costs are variable and will go away if the product is not made. An outside supplier has offered to sell the component to Galaxy for $34. If Galaxy Industries purchases the component from the outside supplier, the effect on income because of this change would be a A $30,000 decrease 1.530,000 increase C. 990,000 decrease D. 110,000 increase