Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $150,000 Direct labor 240,000 Inspecting products 60,000 Providing power 30,000 Moving materials 20,000 Setting up equipment 60,000 Providing supervision 40,000 Total $600,000 If the component is not produced by Foster, inspection of products and provision of power costs will only be 10% of the current production costs; moving materials costs and setting up equipment costs will only be 50% of the production costs; and supervision costs will amount to only 40% of the production amount. An outside supplier has offered to sell the component for $25.50. What is the effect on income if Foster Industries purchases the component from the outside supplier? Question 6 options: $90,000 increase $90,000 decrease $45,000 increase $25,000 increase