Sheridan Company incurs the following costs to produce 9700 units of a subcomponent: Direct materials $8148 Direct labor 10961 Variable overhead 12222 Fixed overhead 16200 An outside supplier has offered to sell Sheridan the subcomponent for $2.85 a unit. No fixed overhead costs are avoidable. If Sheridan accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be $(86). O $(3600). O $7286. O $86