Evan Corp. is considering the possibility of outsourcing the production some upholstered chair pads that are included with some of its wooden chairs. The company has received a bid from a company in Mexico to produce 2500 units per year for $8 each. Evan has the following information about its own production of the chair pads: Direct materials $ 2 Direct labor 1 Variable manufacturing overhead 2 Fixed manufacturing overhead 6 Evan has determined that all variable costs could be eliminated by dropping production of the chair pads, and that 20 percent of the fixed manufacturing overhead is avoidable. At this time, Evan has no specific use in mind for the space currently dedicated to producing the chair pads. If Evan decides to outsource the production of the chair pads what is the incremental profit (loss) from outsourcing?