The cost incurred is:

Priestly Automobiles Company fabricates automobiles

Each vehicle includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume 700 units per month Variable cost per unit $7 per unit Fixed costs $16,000 per month An Indonesian factory has offered to supply Priestly with ready-made units for a price of $14 per wiring harness. Assume that Priestly's fixed costs are unavoidable, but that Priestly could use the vacated production facilities to earn an additional $9,500 of profit per month. If Priestly decides to outsource, monthly operating income will ________. A) increase by $4,600 B) decrease by $16,000 C) increase by $9,500 D) decrease by $24,200

Compared to the transactional contracts that short-term employees are likely to have with their supervisors, relational contracts survive because of the degree of trust that exists between the employees and their supervisors

Indicate whether the statement is true or false