Sanchez Semiconductors produces 200,000 high-tech computer chips per month Each chip uses a component that Sanchez makes in-house. The variable costs to make the component are $1.30 per unit, and the fored costs are $1,100,000 per month The company has been approached by a foreign producer who can supply the component within acceptable quality standards for $1.00 each. If the company chooses to outsource, fured costs can be reduced by 30%. There are no other uses for the facilities currently employed in making the component. What would be the effect on operating income, if the company decides to outsource? O A. There would be no effect on operating income OB. Operating income would decrease by 560,000 OC. Operating income would increase by $200,000 OD. Operating income would increase by $390,000