XYZ Company makes 350 widgets. The variable costs are $38.40 per unit and fixed costs are $32.80 per unit; however, $24.20 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $51.00 per unit? Decrease of $7,070 Increase of $7,070 Decrease of $1,400 Increase of $1,400