2. Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit $ 12 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost 12 8 $ 40 An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. If Olive Corp. accepts the outside offer, what will be the effect on short-term profits? A) $160,000 decrease B) $320,000 increase c) $160,000 increase D) $80,000 decrease 10