will give a like

Galaxy Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total $150,000 240,000 90,000 120,000 $600.000 Assume Galaxy Industries could avoid $40,000 of fixed manufacturing overhead if it purchases the component from an outside supplier. An outside supplier has offered to sell the component for $34. If Galaxy purchases the component from the supplier instead of manufacturing it, the effect on income would be a $100,000 decrease O $10,000 increase $140,000 increase O $60,000 increase