TB MC Qu. 4-49 (Algo) Damon Industries manufactures... Damon Industries manufactures 12,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $114,000 17,500 57,000 77,000 An outside supplier has offered to sell the component for $18. If Damon purchases the component from the outside supplier, the manufacturing facilities would be sed uld be rented out for $11,300. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a Multiple Choice Multiple Choice $73,200 increase. $38,200 decrease. $16,200 decrease. $38.800 increase