Harrisburg, Inc makes a component used in the production of its main product. The variable costs to make the component are $1.20 per unit, and the fixed costs are $1,300,000 per month. Another firm has offered to supply the component for $1.10 each. Harrisburg fixed costs are unavoidable, and the firm has no other use for the space currently used to make the component. What would the effect on Harrisburg's operating income be if the firm decides to outsource the 200,000 units of the component that it needs each month? A. The firm could save 520,000 per month in costs OB The firm's costs would increase by $220,000 per month OC There would be no effect on operating income D. The firm could save $1,300,000 per month in costs A firm is deciding whether to continue making a component or to buying it from an outside supplier. Which of the following is relevant to this decision? OA. The potential uses of the facilities that are currently used to manufacture the component B. The insurance on the manufacturing facility that will continue regardless of the decision O Fixed costs that do not differ between the alternatives D. The cost of the equipment that is currently being used to manufacture the component