Solving, IMA: Cost Management 104. Fornelli, Inc. can produce 100 units of a component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $15,000 6,500 16,000 11,000 If Fornelli, Inc. can purchase the units externally for $40,000, by what amount will its total costs change? a. An increase of $40,000 b. An increase of $2,500 c. An increase of $8,500 d. A decrease of $11,000