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Foto Company makes 50000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is

Foto Company makes 50000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials............................$27 Direct labor..................................$11 Variable manufacturing overhead....$5 Fixed manufacturing overhead........$5 Unit product cost..........................$48 An outside supplier has offered to sell the company all of these parts it needs for $46 a unit. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $1 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. By how much will Foto Company's income change if it decides to purchase the part instead of manufacture it? Give me the amount with a negative sign if income would decrease. Input just the amount if income would increase. Input 0 if income would not change.

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