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

	Per unit
Direct materials	$32.50
Direct labour	12.00
Variable manufacturing overhead	18.50
Fixed manufacturing overhead	28.00
Total unit cost	$91.00

An outside supplier has offered to provide Lucas Inc. with the 10,000 subcomponents at a $85.50 per unit price. Fixed overhead is not avoidable. If Lucas Inc. accepts the outside offer, what will be the effect on short-term profits?

	A.	$225,000 decrease
	B.	$55,000 decrease
	C.	$55,000 increase
	D.	$205,000 decrease