ES Question 23 Sunland Company incurs the following costs to produce 11200 units of a subcomponent: Direct materials $9408 Direct labor 12656 Variable overhead 14112 Fixed overhead 16200 An outside supplier has offered to sell Sunland the subcomponent for $2.85 a unit. 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 $7856. $(3600) O $(656) $656