Cuyahoga Valley Bicycles uses a standard part in the manufacture of several of its bikes. The cost ...

Cuyahoga Valley Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing​ 40,000 parts is​ $138,000, which includes fixed costs of​ $68,000 and variable costs of​ $70,000. The company can buy the part from an outside supplier for​ $3.50 per​ unit, and avoid​ 30% of the fixed costs.
Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for​ $12,000 profit. If Cuyahoga Valley Bicycles makes the​ part, what will its operating income​ be?
A.
​$37,600 greater than if the company bought the part
B.
​$61,600 greater than if the company bought the part
C.
​$37,600 less than if the company bought the part
D.
​$175,600 greater than if the company bought the part