Bonita Industries incurs the following costs to produce 11100 units of a subcomponent: Direct materials $9324 Direct labor 12543 Variable overhead 13986 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

a)$(618).

b)$(3600).

c)$7818.

d)$618.