$12.$ Cotton Corporation currently makes $8,000$ subcomponents a year in one of its factories. The unit costs to produce the subcomponent are:

Cost per Unit

Direct materials $ $26$

Direct labor $30$

Variable manufacturing overhead $15$

Fixed manufacturing overhead $12$

Total unit cost $ $83$

An outside supplier has offered to provide Cotton with the $8,000$ subcomponents at an $$85\mathrm{.}00$ per$-$unit price. No portion of fixed overhead is avoidable. If Cotton accepts the outside offer, what will be the effect on short$-$term profits?

Multiple Choice

$$96,000$ increase

$$112,000$ decrease

No change

$$56,800$ increase