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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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