Question: Hard Core Corp currently makes 1 0 , 0 0 0 subcomponents a year in one of its factories. The unit costs to produce are:

Hard Core Corp currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are:
An outside supplier has offered to provide Hard Core Corp with the 10,000 subcomponents at a $84.50 per unit price. Fixed overhead is not avoidable. If Hard Core Corp accepts the outside offer, what will be the effect on short-term profits?
Question 15 options:
$260,000 increase
no change
$65,000 increase
$195,000 decrease

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