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Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are Direct materials Direct labor Variable manufacturing

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Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are Direct materials Direct labor Variable manufacturing overhead Foved manufacturing overhead Talal unit cost Per unit $32.50 13.00 19.50 28.00 $91.00 An outside supplier has offered to provide Cotton Corp with the 10 000 subcomponents at a $84.50 per unit price Fred overhead is not avoidable Cotton Corp accepts the outside offer, what will be the effect on short-term pros? $260.000 increase $195,000 decrease no change $65,000 increase

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