The answer is A. But could you explain how to get to the answer?

26. PowerSound produces loudspeakers. One electrical component that PowerSound manufactures on its own and uses in the production process causes total costs of $60,000 for 20,000 units which include fixed costs of $30,000. A supplier is now offering the electrical component at a price of $2.50, It PowerSound buys from this outside supplier, it can save 75% of the fixed costs. If PowerSound decides to outsource the production of the electrical component, what is the effect on profit? A) Increase by $2,500 B) Decrease by $2,500 C) Decrease by $500 D) Increase by $7,500