Sanchez Semiconductors produces 400,000 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 fixed 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 10 each if the company chooses to outsource, fixed costs can be reduced by 50% 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. Operating income would decrease by $80,000. B. Operating income would increase by $440,000 O C. There would be no effect on operating income. O D. Operating income would increase by $630,000