Pacino, Inc. has the following data for production of 27,000 units of a subcomponent (part) of its finished product: direct materials, $216,000; direct labor 0.25 hours per unit at an average rate of $30 per hour; estimated variable factory overhead cost was $43 per direct labor hour. Total fixed and variable factory overhead costs incurred for production of the 27,000 units was $340,000. An outside supplier has offered to sell Pacino the subcomponent for $29.20 per unit. Pacinos cost accountant says that if this offer is accepted, fixed costs will not change. Calculate the amount of increase or decrease in Pacinos net income if it accepts the offer from the outside supplier (round to nearest $1).