HD Ltd, makes 10,000 subcomponents a year. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $31.50 12.00 18.50 25.00 $87.00 An outside supplier has offered to provide HD with the 10,000 subcomponents at an $83.50 per unit price. Fixed overhead is not avoidable HD rejects the outside offer, what will be the effect on short term profits? Multiple Choice $215.000 decrease $250,000 increase $35.000 increase no change