Seashore Industries can manufacture 2,000 units of a necessary component part with the following costs:

Direct Materials $80,000

Direct Labour 20,000

Variable Manufacture Overhead 50,000

Fixed Manufacture Overhead 50,000

If Seashore can purchase it at $90 each externally, it can avoid $10,000 of the fixed manufacture overhead and generate $15,000 additional incomes. If Seashore would choose to buy instead of make, what is the incremental income or loss?

Select one:

a. $5,000 loss

b. $20,000 profit

c. $5,000 profit

d. $4,000 loss