Scarlet Company produces electronic components for electronic systems. The company sells 10,000 components per year for $15. The capacity is 12,500 units per year Manufacturing and other costs are as follows: Variable costs per unit Fixed costs per month Direct materials $450 Factory overhead $60,000 Direct labor 225 Selling and admin 30.000 Factory overhead 225 Total $90,000 Total $9.00 Ocher Company has offered a one-year contract to supply the components at a cost of $11.30 per unit. If Scarlet Company accepts the offer, it will be able to rent unused space to an outside firm for $9,000 per year. All other information remains the same. What is the effect on profits if Scarlet Company buys the components from Ocher Company? A decrease of $14,000 A decrease of S14,000 An increase of $14,000 An increase of $104.000