18 Stone River manufactures 13,400 products every year. The cost structure of each unit is as follows: Per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost $32.00 33.00 20.00 12.00 $97.00 A supplier offers Stone River with 13,400 products at a unit price $97.00. Assume that fixed manufacturing overhead is unavoidable. How would short-term profits change if Stone River purchases from the supplier?

Stone River manufactures 13,400 products every year. The cost structure of each unit is as follows: A supplier offers Stone River with 13,400 products at a unit price $97.00. Assume that fixed manufacturing overhead is unavoldable. How would short-term profits change if Stone River purchases from the supplier