Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of procuding 36,000 parts is $110,000, which unlcudes fixed costs of $50,000 and variables costs of $60,000. The comoany can buy the part from an outside supplier for $1 per unit and avoid 30% 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 Votaic outsources, what will be the effect on operating income?

Votaic Electronics an outside supplier for $1 per unit and avold 30% of the fxed costs. Assume that the company can use the freed manufacturing space to make another product that can eam a profit of $18,000 r Vetac outioures, whatwil be the er uses a standand part in themancture of ifferent types of radios.The total cost of producing 36,000 parts is $110,000, which includes fxed costs of $50,000 and variable costs of s60,000. The company can buy the a operating income OA decrease of $55,000 O B increase of $18,000 OC. Incresse of 55,000 O D. decrease of $15.000