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8. Shickman company makes the widgets it uses in one of its products at a cost of $8 per unit. This cost includes $2 of

8. Shickman company makes the widgets it uses in one of its products at a cost of $8 per unit. This cost includes $2 of fixed overhead. The company needs 10,000 of these plugs annually, and Orlando Company has offered to sell them at $5 per unit. If shick man company purchases the plugs, the company would:

a. Increase profits by $30,000

b. Decrease profits by $10,000

c. Increase profits by $10,000

d. Decrease profits by $30,000

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