Pretrial 1 being (prep Bygde M.M Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit $37.50 Direct materials Direct labor 18.00 Variable manufacturing overhead i 24.50 Fixed manufacturing overhead 31.00 $111.00 00:19:02 Total unit cost An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at an $89.50 per unit price. Fixed overhead is not avoidable. If Cotton Corp. rejects the outside offer, what will be the effect on short-term profits? Multiple Choice $310,000 increase $95.000 decrease no change $215,000 increase 13 ents