They Ashley Crites Company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts is:

Variable manufacturing cost.....................................$12.00

Fixed manufacturing cost............................................10.00

Unit product cost............................................$22.00

The part can be purchased from an outside supplies at $20 per unit. If the part is purchased from the outside supplies, 60% of the fixed manufacturing costs can be eliminated. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be:

A. $4,000 increaseC. $2,000 increase

B. $4,000 decreaseD. $2,000 decrease