2. Clifford, Inc. currently manufactures 2,000 subcomponents in one of its factories. The unit costs to produce the subcomponents are:

Direct Materials	60
Direct Labor	100
Variable Manufacturing Overhead	75
Fixed Manufacturing Overhead	90
Total Unit Cost	325

The unit costs to produce are: Due to a labor strike, Clifford is considering purchasing the subcomponents from an outside supplier for $250 per unit rather than paying the 10% increase in direct labor costs demanded by the union. Ten percent of fixed overhead is avoidable. If Clifford purchases the subcomponent from the outside supplier, how much will profit differ from what it would be if it manufactured the subcomponents with the increase in direct labor cost?

a. $30,000 less

b. $20,000 less

c. $10,000 more

d. $8,000 more

Please show your work.