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Question Help Carver Company manufactures a component used in the production of one of its main products. The following cost information is available: 110 Direct

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Question Help Carver Company manufactures a component used in the production of one of its main products. The following cost information is available: 110 Direct materials $410 Direct labor (variable) Variable manufacturing overhead 80 Fixed manufacturing overhead 35 A supplier has offered to sell the component to Carver for $640 per unit. If Carver buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $20,000 annually. Assuming that Carver needs 3,000 components annually and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income if Carver outsources? OA. Operating income would increase by $120,000 B. Operating income would increase by $20,000 OC. Operating income would decrease by $100,000 D. Operating income would decrease by $20,000

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