Sams Gourmet Sandwiches, Inc. currently operates 20 sandwich shops located throughout southeastern Wisconsin. Each location operates independently in most aspects, however, when Sams started operations its management invested in baking ovens which were installed in the larger Waukesha, WI facility. Waukesha produces all the bread used in Sams locations. The ovens required an initial investment of $300,000.

Sams has been operating at a minimal profit over its last four years. Management has begun to wonder if the decision to make its own bread remains financially responsible. They have obtained a quote from Puffs n Stuff, a Madison area bakery, to supply bread at a cost of $2.40/loaf.

This compares with Sams internal costs of producing bread as follows:

	Cost at 75,000 units per Year	Per Unit
Direct Material	$ 97,500	$1.30
Direct Labor	$ 18,750	$0.25
Variable Manufacturing Overhead	$ 41,250	$0.55
Depreciation ovens	$ 90,000	$1.20
Rent - additional Waukesha space	$ 30,000	$0.40
Total cost	$277,500	$3.70

If Sams decides to purchase its bread from the Madison bakery, the rental of space in Waukesha will continue. There would be no other use for the ovens and no resale value.

If Sams does accept the suppliers quote, by how much will Sams net operating income change?

(NOTE: enter a whole number without dollar signs, decimals, or commas. Enter a minus sign to indicate it is a negative number)