anor, Inc. currently manufactures 1,800 subcomponents per month in one of its factories. The unit costs to produce the subcomponents are:

	Per unit
Direct materials		$	31
Direct labor			74
Variable manufacturing overhead			48
Fixed manufacturing overhead			74
Total unit cost		$	227

Manor is considering purchasing the subcomponents from an outside supplier, who normally charges $240 per unit. The supplier also has an "Exclusive Buyer's Club" which costs $24,000 per month to join, but whose members can purchase the subcomponents for $190 per unit. Fixed overhead is not avoidable. If Manor chose to purchase the subcomponents using the cheaper of the two buying options, what would be the effect on profit? (Do not round intermediate calculations.)

Multiple Choice

• Decrease $156,600

• Decrease $90,600

• Increase $66,000

• Increase $469,800