Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are:

	Per unit
Direct materials		$	30.50
Direct labor			11.00
Variable manufacturing overhead			17.50
Fixed manufacturing overhead			24.00
Total unit cost		$	83.00

An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at a $82.50 per unit price. Fixed overhead is not avoidable. If Cotton Corp. rejects the outside offer, what will be the effect on short-term profits?