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Bramble inc can produce 100 units of a component part with the following costs: Direct...

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Accounting

Bramble inc can produce 100 units of a component part with the following costs:

Direct materials: $29700

Direct labour: $13400

Variable Overhead: $31500

Fixed overhead: $21400

If bramble Inc. purchases the units externally for $79600, by what amount will its total costs change? Fixed costs are not avoidable if the company purchases externally. A) an increase of $5000

B) an increase of $16300 C) an increase of $79600 D) a decrease of $21400

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