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Concord Corporation incurs the following costs to produce 11000 units of a subcomponent: Direct materials $9240 Direct labor 12430 Variable overhead 13860 Fixed overhead 16200

Concord Corporation incurs the following costs to produce 11000 units of a subcomponent:

Direct materials $9240
Direct labor 12430
Variable overhead 13860
Fixed overhead 16200

An outside supplier has offered to sell Concord the subcomponent for $2.85 a unit. If Concord accepts the offer, by how much will net income increase (decrease)?

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