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WT. Ginsburg Engine Company manufactures port ACT31107 used in several of its engine models Monthly production costs for 1,100 units are as follows: Direct materiais

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WT. Ginsburg Engine Company manufactures port ACT31107 used in several of its engine models Monthly production costs for 1,100 units are as follows: Direct materiais $46,000 Direct labor 7.500 Variable overhead costs 32.500 Foed overhead costs 21.000 Total costs $107.000 It is estimated that 7% 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 $94.75 per unit WW.T. Ginsburg Engine Company purchases 1.100 ACT31107 parts from the outside supplier per month, then its monthly operating income wil Round any intermediary calculations and your final answer is the nearest cont.) O A. Increase by $16,755 OB. decrease by $16,756 OC increase by $27,195 OD. decrease by 527,195

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