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Sam's Gourmet Sandwiches, Inc.currently operates 20 sandwich shops located throughout southeastern Wisconsin. Each location operates independently in most aspects, however, when Sam's started operations its

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Sam's Gourmet Sandwiches, Inc.currently operates 20 sandwich shops located throughout southeastern Wisconsin. Each location operates independently in most aspects, however, when Sam's started operations its management invested in baking ovens which were installed in the larger Waukesha, WI facility. Waukesha produces all the bread used in Sam's locations. The ovens required an initial investment of $300,000. Sam's 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 Sam's internal costs of producing bread as follows: Cost at 75,000 units Per Unit per Year Direct Material $97,500 $1.30 Direct Labor Variable Manufacturing Overhead $18,750 $0.25 $0.55 $41.250 Depreciation-ovens $90,000 $1.20 Rent additional $30,000 $0.40 Waukesha space Total cost $277,500 $3.70 Suppose that if Sam's no longer makes bread, it could rent out the freed-up space to another retailer for $36,000/year. Considering this new information, if Sam's accepts the supplier's quote, by how much will Sam's net operating income change? (NOTE: enter a whole number without dollar signs, decimals, or commas. Use a minus sign to indicate a negative number)

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