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W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1.030 units are as follows: Direct materials

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W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1.030 units are as follows: Direct materials $43,000 Direct labor 9,500 Variable overhead costs 31,500 Fixed overhead costs 19,000 Total costs $103,000 It is estimated that 10% of the fixed overhead costs assigned to ACT31107 will no longer be incurred if the company purchases ACT31107 from the outside supplier W.T. Ginsburg Engine Company has the option of purchasing the part from an outside supplier at $94.75 per unit (Round any I W.T. Ginsburg Engine Company nurchases 1,030 ACT31107 parts from the outside supplier per month, then its monthly operating income wa intermediary calculations and your final answer to the nearest cent) O A. decrease by $11,693 OB. decrease by $24.993 O C. increase by $11,693 OD. Increase by $24,993

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