Sam's Manufacturing Company currently makes 100 units of a necessary component. Management is considering outsourcing this component for a cost of $1,700 per unit. Sam's incurs the following total production costs: Direct Materials $80,000 Direct Labor 23,000 Variable Overhead 37,000 Fixed Overhead 24,000 If production is outsourced, none of the fixed overhead costs will be eliminated. How would profits be impacted if Sam's bought the component?

Direct Materials	$80,000
Direct Labor	23,000
Variable Overhead	37,000
Fixed Overhead	24,000

If production is outsourced, none of the fixed overhead costs will be eliminated. How would profits be impacted if Sam's bought the component?