Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $ 33.00 Direct labor 13.50 Variable manufacturing overhead 20.00 Fixed manufacturing overhead 26.50 Total unit cost $ 93.00 An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at an $85.00 per unit price. Fixed overhead is not avoidable. If Cotton Corp. rejects the outside offer, what will be the effect on short-term profits? Multiple Choice $265,000 increase $185,000 decrease no change $80,000 increase