Answers
| Cost of Making | Cost of Buying | Increase/Decrease in Income | |
| Direct materials | 39,060 | 0 | 39,060 |
| Direct labor | 36,540 | 0 | 36,540 |
| Manufacturing overhead | 50,400 | 30,240 | 20,160 |
| Outside Supplier's price | 0 | 103,320 | -103,320 |
| Total Cost | 126,000 | 133,560 | -$7,560 |
$7,560 incremental cost.
first option is correct option.
Kindly comment if you need further assistance.
Thanks‼!
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