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Clemente Inc incurs the following costs to produce 10,000 units of a subcomponent: $28,000 Direct materials Direct labor 37,500 Variable overhead 42,000 54,000 Fixed overhead

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Clemente Inc incurs the following costs to produce 10,000 units of a subcomponent: $28,000 Direct materials Direct labor 37,500 Variable overhead 42,000 54,000 Fixed overhead An outside supplier has offered to sell Clemente the subcomponent for $9.50 a unit If Clemente accepts the offer, it could use the production capacity to produce another product that would generate additional income of $12,000. The increase (decrease) in net income from accepting the offer would be

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