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Marigold Corp. produces 5000 units of part A12E. The following costs were incurred for that...

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Accounting

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Marigold Corp. produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials 55000 Direct labor 160000 Variable overhead 75000 Fixed overhead 175000 If Marigold buys the part from an outside supplier $20000 of the fixed overhead is avoidable, If the outside supplier offers a unit price of $65, net income will increase (decrease) by a O $(35000) $(15000) O $130000 $85000

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