Vest Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $ 95,000 Direct labor 140,000 Variable overhead 65,000 Fixed overhead 90,000 Total $390,000 An outside supplier has offered to sell the component for $12.75. Fixed cost will remain the same if the component is purchased from an outside supplier. Vest Industries can rent its unused manufacturing facilities for $45,000 if it purchases the component from the outside supplier. What is the effect on income if Vest purchases the component from the outside supplier? $225,000 decrease $195,000 increase $165,000 decrease $135,000 increase