Bonita Industries incurs the following costs to produce 9000 units of a subcomponent: Direct materials $7560 Direct labor 10170 Variable overhead 11340 Fixed overhead 16200 An outside supplier has offered to sell Bonita the subcomponent for $2.85 a unit. If Bonita could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by

A. $(5610).

B.$(1560).

C.$6420.

D. $420.