Swifty Corporation incurs the following costs to produce 9400 units of a subcomponent: Direct materials $7896 Direct labor 10622 Variable overhead 11844 Fixed overhead 16200 An outside supplier has offered to sell Swifty the subcomponent for $2.85 a unit. If Swifty accepts the offer, by how much will net income increase (decrease)?

$(2726)

$3572

$19772

$(8272)