am's Manufacturing Company currently makes 100 units of a necessary component.Management is considering outsourcing this component for a cost of $1,700 per unit.Sam's incurs the following total production costs:

Direct Materials$80,000Direct Labor23,000Variable Overhead37,000Fixed Overhead24,000

If production is outsourced, none of the fixed overhead costs will be eliminated. How would profits be impacted if Sam's bought the component?

Profits would go up by$67,000

Profits would go down by$6,000

Profits would go up by$6,000

Profits would go down by$30,000

Sam's Manufacturing Company currently makes 100 units of a necessary component. Management is considering outsourcing this component for a cost of $1,700 per unit. Sam's incurs the following total production costs: Direct Materials $80,000 Direct Labor 23,000 Variable Overhead 37,000 Fixed Overhead 24,000 If production is outsourced, none of the fixed overhead costs will be eliminated. How would profits be impacted if Sam's bought the component? O Profits would go up by $67,000 O Profits would go down by $6,000 O Profits would go up by $6,000 O Profits would go down by $30,000