Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows:

Relevant costs of making the component in-house:

Direct materials $150,000

Direct labor 240,000

Inspecting products 60,000

Providing power 30,000

Providing supervision 40,000

Setting up equipment 60,000

Moving materials 20,000

Total $600,000

If the component is not produced by Foster, inspection of products and provision of power costs will only be 10% of the current production costs; moving materials costs and setting up equipment costs will only be 50% of the production costs; and supervision costs will amount to only 40% of the production amount. An outside supplier has offered to sell the component for $25.50.

What is the effect on income if Foster Industries purchases the component from the outside supplier?