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Racing Catamarans Company requires tarps as part of the catamarans it manufactures. Currently Racing Catamaran is manufacturing the tarps in factories. Production is 10,000 tarps

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Racing Catamarans Company requires tarps as part of the catamarans it manufactures. Currently Racing Catamaran is manufacturing the tarps in factories. Production is 10,000 tarps per year. The unit costs per tarp are: Per unit Direct materials $32.50 Direct labor 13.00 19 50 Variable manufacturing overhead 26.00 Fixed manufacturing overhead $91.00 Total unit cost V An outside supplier has offered to provide Racing Catamarans with the 10,000 tarps at a 584.50 per unit price. Fixed overhead is not avoldable Catamarans accepts the outside offer, what will be the effect on short-term profits? $65.000 increase $260,000 increase no change O $195,000 decrease

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