currently makes 13,100 subcomponents a year in one of its factories. The unit costs to produce are:

	Per unit
Direct materials		$	22
Direct labor			22
Variable manufacturing overhead			13
Fixed manufacturing overhead			9
Total unit cost		$	66

An outside supplier has offered to provide Olive Corp. with the 13,100 subcomponents at a $84 per unit price. Fixed overhead is not avoidable. If Olive Corp. rejects the outside offer, what will be the effect on short-term profits?