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HD Ltd makes 10,000 subcomponents a year. The unit costs to produce are 24 Per unit $34.50 15.80 21.50 28.00 $99.00 Direct materials Direct labor

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HD Ltd makes 10,000 subcomponents a year. The unit costs to produce are 24 Per unit $34.50 15.80 21.50 28.00 $99.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost 9 17:46 An outside supplier has offered to provide HD with the 10,000 subcomponents at an $86.50 per unit price. Fixed overhead is not avoidable I HD rejects the outside offer, what will be the effect on short-term profits? Multiple Choice $125.000 increase An outside supplier has offered to provide HD with the 10,000 subcomponents at an $86.50 per unit price Fixed overhead is not avoidable If HD rejects the outside offer, what will be the effect on short-term profits? 24 Multiple Choice 801734 $125,000 increase $155,000 decrease O no change 0 $280,000 increase

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