The Rodgers Company makes 27,800 units of a certain component each year for use in one of its products. The cost per unit for the component at this level of activity is as follows:

Direct materials	$6.20
Direct labor	$12.80
Variable manufacturing overhead	$7.80
Fixed manufacturing overhead	$6.90

Rodgers has received an offer from an outside supplier who is willing to provide 27,800 units of this component each year at a price of $29.80 per component. Assume that direct labor is a variable cost. None of the fixed manufacturing overhead would be avoidable if this component were purchased from the outside supplier. Assume that if the component is purchased from the outside supplier, $35,100 of annual fixed manufacturing overhead would be avoided and the facilities now being used to make the component would be rented to another company for $64,800 per year. If Rodgers chooses to buy the component from the outside supplier under these circumstances, then the impact on annual net operating income due to accepting the offer would be: