Question: Cotton Corp currently makes 8700 subcomponents a year in one of ts factories. The und costs to produce are Mis See Direct materials Direct labor

 Cotton Corp currently makes 8700 subcomponents a year in one of

Cotton Corp currently makes 8700 subcomponents a year in one of ts factories. The und costs to produce are Mis See Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $29.00 38.80 20.20 11.08 $90.00 An outside supplier has offered to provide Cotton Corp. with the 8700 sub?omponents at an $9400 per unit prce Fund Overhead and avoidable. If Cotton Corp. accepts the outside offer what will be the effect on short term proft3 Multiple Choice $130,500 decrease $95.700 Increase no change 568730 increase

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