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Getz Industries manufactures 10678 components per year. The manufacturing costs per component was determined as follows: Direct materials $228478 Direct labour 256373 Variable manufacturing overhead

Getz Industries manufactures 10678 components per year. The manufacturing costs per component was determined as follows:

Direct materials

$228478

Direct labour

256373

Variable manufacturing overhead

51952

Fixed manufacturing overhead

275641

An outside supplier has offered to sell Getz the component for $89.

Assume Getz Industries could rent their unused manufacturing facilities for $30378 if they purchase the component from the outside supplier. If Getz purchases the component from the supplier instead of manufacturing it, the effect on income would be:

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