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Bonita Industries incurs the following costs to produce 10500 units of a subcomponent: Direct materials $8820 Direct labor 11865 Variable overhead 13230 Fixed overhead 16200

Bonita Industries incurs the following costs to produce 10500 units of a subcomponent:

Direct materials $8820

Direct labor 11865

Variable overhead 13230

Fixed overhead 16200

An outside supplier has offered to sell Bonita the subcomponent for $2.85 a unit.

If Bonita accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be

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