Your Company produces batteries which are used in the production of their riding tractors. The costs to produce 30,000 batteries annually are as follows: Direct material $ 125,000 Direct labor 700,000 Variable overhead 75,000 Fixed overhead 195.000 Total $1.095,000 An outside supplier has offered to sell Your Company 30,000 similar batteries for a total cost of $1,000,000. If they are purchased from the outside supplier, 55% of annual fixed factory overhead could not be avoided. If Your Company decides to buy the battery, what is the change in net income net operating income? $95,000 57,250 ($12,250) 512,250 (57.250)