Current Attempt in Progress Sunland Company incurs the following costs to produce 12000 units of a subcomponent: Direct materials $9800 Direct labor 11250 Variable overhead 12000 Fixed overhead 18200 An outside supplier has offered to sell Sunland the subcomponent for $2.40 a unit. No fixed overhead costs are avoidable. If Sunland 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 O $650. O $(3600) O $(650) O $7850