Colorado Ski Company Makes Downhill Ski Equipment

Colorado Ski Company makes downhill ski equipment. Assume that New Mexico Ski Company has offered to produce ski poles for Colorado Ski Company for $18 per pair. Colorado Ski Company needs 100,000 pairs of poles per period. Colorado Ski Company can only avoid $125,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable.
Colorado Ski Company currently has the following costs at a production level of 100,000 pairs of poles:
Colorado Ski Company should:

A) Outsource production because operating income would increase by $325,000
B) Not outsource production because operating income would decline by $325,000
C) Outsource production because operating loss would decline by $325,000
D) Not outsource production because operating loss would increase by 325,000