Blossom Industries must decide whether to make-or-buy some of its components. The costs of producing 217000...

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Blossom Industries must decide whether to make-or-buy some of its components. The costs of producing 217000 battery packs for its product are as follows: Direct Materials Direct Labor Variable overhead Fixed overhead $18600 $6200 $7440 $11160 The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2480 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs? O A decrease in net income of $4340. An increase in net income of $8680. O An increase in net income of $6820. An increase in net income of $4340. Blossom Industries must decide whether to make-or-buy some of its components. The costs of producing 217000 battery packs for its product are as follows: Direct Materials Direct Labor Variable overhead Fixed overhead $18600 $6200 $7440 $11160 The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2480 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs? O A decrease in net income of $4340. An increase in net income of $8680. O An increase in net income of $6820. An increase in net income of $4340.

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