Sheridan Company incurs the following costs to produce 10000 units of a subcomponent: Direct materials. Direct labor. Variable overhead Fixed overhead. $8000 13000 13800 19000 An outside supplier has offered to sell Sheridan the subcomponent for $2.60 a unit. If Sheridan could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by [4 E. H T al in fo P

Sheridan Company incurs the following costs to produce 10000 units of a subcomponent: An outside supplier has offered to sell Sheridan the subcomponent for $2.60 a unit. If Sheridan could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by