Galaxy Industries manufactures and sells 15,000 components per year as one part of its production activities. The annual costs to manufacture the part are as follows:

Direct materials $150,000

Direct labor $200,000

Variable manufacturing overhead $90,000

Fixed manufacturing overhead (common costs allocated across products) $72,000

Fixed manufacturing costs directly traceable to this component. (Rent on equipment only used to make this component. The equipment will not be rented if Galaxy purchases the component.) $48,000 Total $560,000

An outside supplier has offered to sell the component to Galaxy for $34 each.

If Galaxy purchases the component instead of manufacturing it, what would be the effect on Galaxys annual net income?