Olive Corp. currently makes 9,900 subcomponents a year in one of its factories. The unit costs to produce are:

	Per unit
Direct materials		$	30
Direct labor			27
Variable manufacturing overhead			21
Fixed manufacturing overhead			12
Total unit cost		$	90

An outside supplier has offered to provide Olive Corp. with the 9,900 subcomponents at a $92 per unit price. Fixed overhead is not avoidable. If Olive Corp. rejects the outside offer, what will be the effect on short-term profits?