Question Content AreaYankton Industries manufactures $20,000$ components per year. The manufacturing cost of the components was determined as follows:

Direct materials $$140,000$

Direct labor $230,000$

Inspecting products $60,000$

Providing power $30,000$

Providing supervision $40,000$

Setting up equipment $60,000$

Moving materials $20,000$

Total $$580,000$

If the component is not produced by Yankton, inspection of products and provision of power costs will only be $10\%$ of the production costs; moving materials costs and setting up equipment costs will only be $50\%$ of the production costs; and supervision costs will amount to only $40\%$ of the production amount. An outside supplier has offered to sell the component for $$23\mathrm{.}50.$

What is the effect on income if Yankton Industries purchases the component from the outside supplier?

a$.$ $$25,000$ increase

b$.$ $$45,000$ increase

c$.$ $$80,000$ decrease

d$.$ $$80,000$ increase