Crane Company incurs the following costs to produce 9500 units of a subcomponent:

Direct materials	$7980
Direct labor	10735
Variable overhead	11970
Fixed overhead	16200

An outside supplier has offered to sell Crane the subcomponent for $2.85 a unit. If Crane accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be

$(3600).

$7210.

$10.

$(10).