W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1,040 units are as follows: Direct materials Direct labor Variable overhead costs Fixed overhead costs Total costs $41,000 11,500 32,500 21,000 $106,000 It is estimated that 9% of the fixed overhead costs assigned to ACT31107 will no longer be incurred if the company purchases ACT31107 from the outside supplier. W.T. Ginsburg Engine Company has the option of purchasing the part from an outside supplier at $95.75 per unit. If W.T. Ginsburg Engine Company purchases 1,040 ACT31107 parts from the outside supplier per month, then its monthly operating income will ___ calculations and your final answer to the nearest cent.) _(Round any intermediary O A. decrease by $27,970 OB. increase by $27,970 O c. increase by $12,690 OD. decrease by $12,690