Lunar Inc. manufactures ceiling fans. Each fan contains an electric motor which Lunar currently manufactures in-house. Monthly production is 600 motors. At this level of output, the per-unit costs of producing the electric motors in-house is as follows:

Direct materials $ 12.00

Direct labor 5.00

Variable manufacturing overhead 9.00

Fixed manufacturing overhead ($8,100 total 600 units) 13.50

Total cost, per-unit $39.50

In lieu of producing the motors in-house, Lunar can purchase 600 motors from a supplier for $34 per unit. Lunar would reduce its total fixed manufacturing overhead costs by $4,200 if it outsources production. In addition, Lunar could repurpose the machinery used to make motors to manufacture a different product that would generate a monthly contribution margin of $5,000. What would be the impact on Lunars operating income of outsourcing production of the electric motors?