Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent:

Direct materials $8,400

Direct labor 11,250

Variable overhead 12,600

Fixed overhead 16,200

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

If Clemente accepts the offer, by how much will net income increase (decrease)?

a. $3,750

b. $19,950

c. $(8,850)

d. $(2,850)