Division P of Launch Corporation has the capacity for making 85,000 wheel sets per year and regularly sells 70,000 each year on the outside market. The regular sales price is $200 per wheel set, and the variable production cost per unit is $145. Division Q of Launch Corporation currently buys 40,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $190 per wheel set. If Division Q were to buy the 40,000 wheel sets it needs annually from Division P at $167 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be:,

$700,000

$975,000

$1,800,000

$55,000

$1,870,000