Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of PartP40:

Number of parts produced annually	26,000
Fixed costs	$$42,000
Variable costs	$71,000
Total cost to produce	$113,000

Jackson Corporation can purchase the part from an outside supplier for $4.34unit. If they purchase from the outsidesupplier, 50% of the fixed costs would be avoided. If Jackson Corporation makes thepart, how much will its operating income increase or decrease by?