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Waterway Industries produces 5000 units of part A12E. The following costs were incurred for that level of production: $65000 170000 Direct materials Direct labor Variable

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Waterway Industries produces 5000 units of part A12E. The following costs were incurred for that level of production: $65000 170000 Direct materials Direct labor Variable overhead Fixed overhead 85000 175000 If Waterway buys the part from an outside supplier, $10000 of the fixed overhead is avoidable. If the outside supplier ers a unit price of $77, net income increase (decrease) by O $(55000). O $(65000) O $85000. O $200000

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