Barlow Company makes wheels that it uses in the production of childrens wagons. The costs to produce 100,000 wheels annually are as follows:

Direct materials $45,000

Direct labor $60,000

Variable manufacturing overhead $32,000

Fixed manufacturing overhead $70,000

An outside supplier has offered to sell Barlow similar wheels for $1.50 per wheel. If the wheels are purchased from the outside supplier, $15,000 of annual fixed manufacturing overhead will be avoided and the facilities now being used to make the wheels would be rented to another company for $30,000 per year. If Barlow chooses to buy the wheel from the outside supplier, the change in annual operating income is: