Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $14,000 Direct labor 18,750 Variable overhead 21,000 Fixed overhead 27,000 An outside supplier has offered to sell Clemente the subcomponent for $4.75 a unit. If Clemente could avoid $5,000 of fixed overhead by accepting the offer, net income would increase (decrease) by: $(5,250) $11,250 $1,250 $(9,750)