Gina’s Inc.manufacturer’s 10,000 units of Part X5 each year for use on its production line. At this level of activity, the costs per unit for X5 is as follows: direct material $2.20, direct labor $1.60, variable manufacturing overhead $1.00, and fixed manufacturing overhead $4.00. An outside supplier has offered to sell 10,000 units of Part X5 to Gina’s Inc. for $10 per part. Fixed manufacturing overhead cannot be avoided. How much will profits increase or decrease if the outside supplier’s offer is accepted?

**Not A or B***