Barney Enterprises manufactures one of the components used to assemble its main company product. Specialty Products, Inc., has offered to make the component at a cost of $12.90 per unit. Barney Enterprises' current cost is $16.25 per unit of the component, based on the 95,000 components that Bamey Enterprises currently produces. Read the requirements. This current cost per unit is based on the following calculations: (Click the icon to view the information.) None of Barney Enterprises' fixed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generate $33,000 of contribution margin per year. Requirement 1. If Barney Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Enter a "0" for any zero balances. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) Incremental Analysis Outsourcing Decision Variable costs Plus: Fixed costs Total cost of 95,000 components Less: Profit from another product Net cost Make Component Outsource Component Difference