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Help Save & Exit Subr Manor, Inc. currently manufactures 1,200 subcomponents per month in one of its factories. The unit costs to produce the subcomponents

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Help Save & Exit Subr Manor, Inc. currently manufactures 1,200 subcomponents per month in one of its factories. The unit costs to produce the subcomponents are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $ 42 84 67 90 $283 Manor is considering purchasing the subcomponents from an outside supplier, who normally charges $280 per unit. The supplier also has an "Exclusive Buyer's Club" which costs $28,000 per month to join, but whose members can purchase the subcomponents for $230 per unit. Fixed overhead is not avoidable. If Manor chose to purchase the subcomponents using the cheaper of the two buying options, what would be the effect on profit? (Do not round intermediate calculations.) Multiple Choice Decrease $104,400 Decrease $72,400 Manor is considering purchasing the subcomponents from an outside supplier, supplier also has an "Exclusive Buyer's Club" which costs $28,000 per month t the subcomponents for $230 per unit. Fixed overhead is not avoidable. If Manc using the cheaper of the two buying options, what would be the effect on profit calculations.) Multiple Choice Decrease $104,400 Decrease $72,400 Increase $32,000 Increase $313,200

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