if the company accepts the offer, by how much will net income increase(decrease)?

a.$8,850

b.$3,750

c.$19,950

d.$2,850

Orlando Medical Equipment Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell the subcomponent for $2.85 a unit