THE Company has received an offer from an outside supplier to sell them 50,000 units each year of a part it uses in the manufacture of its products. Currently, THE Company is making the 50,000 units of this part themselves. The outside supplier wants to charge THE Company $69.40 per unit for this part. To evaluate the offer, THE Company has gathered the following information related to the cost of producing this part themselves: direct materials direct labor variable overhead fixed overhead total $22.60 per unit 24.50 per unit 11.80 per unit 15.20 per unit $74.10 per unit ---- If THE Company accepts the outside supplier's offer, the facilities now being used to make this part could be used to make more units of a product that is in high demand. The additional contribution margin that could be earned on this other product would be $80,000 per year. If THE Company accepts the outside supplier's offer, $5.30 of the fixed overhead cost being applied to the part would continue to be incurred and would be allocated to the THE Company's remaining products. The remaining amount would be eliminated if THE Company purchases the part from the outside supplier. What would be the effect on THE Company's net income if they accept the outside supplier's offer? O $235,000 increase $30,000 decrease $80,000 increase $260.000 decrease $315,000 increase $180,000 decrease $50,000 increase none of the above choices are correct