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Voltaic Electronics uses a standard part in the manufacture of different types of radios. The fotal cost of producing 39,000 parts is $105,000.00, which includes

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Voltaic Electronics uses a standard part in the manufacture of different types of radios. The fotal cost of producing 39,000 parts is $105,000.00, which includes fixed costs of $50,000.00 and variable costs of $55,000.00. The company can buy the part from an outside supplier for $2.00 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 eam a profit of $16,000.00. If Voltaic outsources, what will be the effect on operating income

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