Hungry Like the Wolf, Inc. currently makes 1,000 subcomponents a year in one of its factories. The production costs per unit are provided below: Per Unit $25 $10 Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Unit Cost $15 $20 $70 Fixed Manufacturing Overhead would not be avoidable. An outside supplier has offered to provide Hungry Like the Wolf, Inc. the 1,000 subcomponents for $65 per unit. Suppose Hungry Like the Wolf, Inc. could use the space in its factory to produce another product that would add $50,000 in contribution margin. Which of the following would be true? Purchasing from the outside supplier would increase income by $35,000. Purchasing from the outside supplier would decrease income by $35,000 Purchasing the components from the supplier would cost the same as making them. Hungry Like the Wolf, Inc, should continue to make the subcomponents