5-8 Seved Olive Corp. currently makes 14,000 subcomponents a year in one of its factories. The unit costs to produce are Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $28 30 15 11 $84 Help Save & Exit Submit An outside supplier has offered to provide Olive Corp. with the 14,000 subcomponents at an $89 per unit price. Fixed overhead is not avoidable. If Olive Corp. accepts the outside offer, what will be the effect on short-term profits? Multiple Choice $154,000 decrease $730,000 increase $154,000 increase Fixed manufacturing overhead Total unit cost 11 $84 An outside supplier has offered to provide Olive Corp. with the 14,000 subcomponents Corp. accepts the outside offer, what will be the effect on short-term profits? Multiple Choice 2 # =3 3 W W S $154,000 decrease $730,000 increase $154,000 increase $224.000 decrease 0 44