Option D (not visible) reads: $560,000 more

Clifford, Inc. currently manufactures 2,700 subcomponents in one of its factories. The current unit costs to produce the subcomponents are: Per unit $ 18 17 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost 48 $104 Due to a labor strike, Clifford is considering purchasing the subcomponents from an outside supplier for $150 per unit rather than paying the 10% increase in direct labor costs demanded by the union. Fixed overhead is not avoidable. If Clifford purchases the subcomponent from the outside supplier, how much will profit differ from what it would be if it manufactured the subcomponents with the increase in direct labor cost? (Do not round intermediate calculations.) Multiple Choice o $129,600 less o $248,130 less o $560,000 less