Sam's Manufacturing Company currently makes 100 units of a necessary component. Management is considering outsourcing this component for a cost of $1,200 per unit. Sam's incurs the following total production costs: If production is outsourced, none of the fixed overhead costs will be eliminated. How would profits be impacted if Sam's bought the component? Profits would go up by $40,000 Profits would go up by $27,000 Profits would go up by $13,000 Profits would go down by $40,000