Cotton Corp. currently makes 8,700 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $29.00 30.00 20.00 11.00 $90.00 An outside supplier has offered to provide Cotton Corp. with the 8,700 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 no change $68,730 increase $95,700 increase $130,500 decrease