Variable costs

Fixed costs

$$600,000$

$900,000$

An outside supplier has offered to make the item at $$4\mathrm{.}50$ a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $$165,000.$ The net increase $($decrease$)$ in the net income of accepting the supplier's offer is

$$285,000.$

$$(15,000).$

$$315,000.$

$$840,000.$