Sanchez Semiconductors produchs 200,000 high-tech computer chips per month. Each chip uses a component that Sanchez makes inthouse. The variable ccuts fo make the component are $1.20 per unit, and the fixed costs are $1,200,000 per month. The company has been approached by a foreign producer who can supply the component, weth in acceptable quality standards, for $1.00 each. If the company chooses to outsource, fixed costs can be reduced by 30%. There are no other uses for the facilites currently employed in making the component. What would bo the effect on operating income, if the company decides to outsource? A. Operating income would increase by $200,000. B. Oporating incomo would increase by $400,000. c. There would be no effect on operating income. 2. Operating income would docroase by $40,000