Fernwood Fan Co. produces a product (fan) part. The following costs are being incurred for production of the 500 units of the part needed for January manufacturing operations:

Direct materials: $ 6,000

Direct labor: $ 5,600

Total Factory overhead cost: $ 4,000

An outside supplier offers to provide 500 parts for a purchase cost of $28 per unit. Note: Fixed factory overhead cost, which is 30% of total factory overhead cost, will be unaffected by the decision to purchase the part from the outside supplier. Calculate the increase or decrease in January Net Income if the 500 parts are purchased for $28 per unit.