Shickman Company Makes the Widgets It Uses in One of Its

Multiple Choice

Shickman Company makes the widgets it uses in one of its products at a cost of $8 per unit.This cost includes $2 of fixed overhead.The company needs 10,000 of these plugs annually, and Orlando Company has offered to sell them at $5 per unit.If Shickman Company purchases the plugs, the company would:

A) Increase profits by $30,000.
B) Decrease profits by $10,000.
C) Increase profits by $10,000.
D) Decrease profits by $30,000.