SVE & EXT SLATE Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $150,000 170,000 70,000 90,099 Jon - not a Skype An outside supplier has offered to sell the component for $14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $11.000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a Multiple Choice O $41.000 increase O $29.000 incente 0 $49.000 decente $8.000