Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are:

	Per unit
Direct materials		$	34.50
Direct labor			15.00
Variable manufacturing overhead			21.50
Fixed manufacturing overhead			28.00
Total unit cost		$	99.00

An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at a $86.50 per unit price. Fixed overhead is not avoidable. If Cotton Corp. rejects the outside offer, what will be the effect on short-term profits?