Valuable Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 42,000 parts is $100,000, which includes fixed costs of $40,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $1 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Valuable outsources, what will be the effect on operating income? increase of $42,000 decrease of $42,000 decrease of $8,000 increase of $16,000