Lux Company annually produces 300 units of a component with the following unit costs to produce that component.

Direct materials		$420
Direct Labor		110
Variable manufacturing overhead		90
Fixed manufacturing overhead		60
Total unit cost		$680

A supplier has offered to provide the component to X Company for $640 per unit. Total annual fixed costs of the company would not change if the component is purchased; however the space used to make the component could be rented for $7000 per year. If X Company buys the component rather than making it, by what amount would the company's annual net income increase or decrease?