Cotton Corp. currently makes 14,800 subcomponents a year in one of its factories. The unit costs to produce are: 45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $33.00 27.00 24.00 9.00 $93.00 An outside supplier has offered to provide Cotton Corp. with the 14,800 subcomponents at an $94.00 per unit price. Fixed overhead is not avoidable. If Cotton Corp. accepts the outside offer, what will be the effect on short-term profits? Multiple Choice $133,200 increase $148,000 decrease Oo oo O no change $124,320 increase