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Oriole Company incurs the following costs to produce 9700 units of a subcomponent: Direct materials $8148 Direct labor 10961 Variable overhead 12222 Fixed overhead 16200

Oriole Company incurs the following costs to produce 9700 units of a subcomponent: Direct materials $8148 Direct labor 10961 Variable overhead 12222 Fixed overhead 16200 An outside supplier has offered to sell Oriole the subcomponent for $2.85 a unit. If Oriole could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by

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