Question Completion State 15 16 11 18 19 2 3 4 5 1 15 17 51 41 Moving to another question will save this response Question 19 of a Question 19 Z points Sve A Item is used in one of Corporation A's products. The company makes 20.000 units of this hem each year. The company's reports the following costs of producing them at this level of activity Per Un Direct materials $10 Direct labor $2.70 Variable manufacturing overhead $ 3.80 Supervisor's salary $1.50 Depreciation of special equipment Allocated general overhead $9.00 An outside supplier has offered to produce items and sell to the company for $170 ch. If this offer is accepted the supervisor's salary and will of the variable costs, including direct labor, can be wided 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. If the outside suppler's offer were accepted, only 550.000 of these allocated general overhead costs would be avoided management decides to buy item from the outside supplier rather than to continue making the item, what would be the wual impact on the company's overall net operating income? Net operating income would decline by $81,500 per year. Net operating income would decline by 5111,500 per year. Net operating income would decline by $132.000 per year. Net operating income would dedine by 551,500 per year. ting.dmg