ACDC Company has the following monthly production costs for1,080 units of part ACDC-7743:

Direct materials	$45,000
Direct labor	8,500
Variable overhead costs	31,500
Fixed overhead costs	23,000
Total manufacturing costs	$108,000

ACDC Company's controller estimates they can save 6% of the fixed overhead costs assigned to ACDC-7743 if they purchase the part from an outside supplier instead of making it in-house. The outside supplier would charge ACDC $95.75 per unit if they accepted the contract. By how much, and in which direction, would monthly operating income change if ACDC were to accept the contract?

(Round any intermediary calculations to the nearest cent. Round your final answer to the nearest dollar.)

B.

decrease by $17,030