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u W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1,080 units are as follows:

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u W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1,080 units are as follows: Direct materials Direct labor Variable overhead costs Fixed overhead costs. Total costs $46,000 7,500 32,500 20,000 $106,000 It is estimated that 6% of the fixed overhead costs assigned to ACT3110 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 $93.75 per unit If W.T. Ginsburg Engine Company purchases 1,080 ACT31107 parts from the outside supplier per month, then its monthly operating income will. intermediary calculations and your final answer to the nearest cent.) (Round any ur OA. increase by $23,950 OB. decrease by $14,050 OC. decrease by $23,950 Du ent DAY OD. Increase by $14,050

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