Vaughn Manufacturing incurs the following costs to produce 8500 units of a subcomponent: Direct materials $8000

Direct labor 11750

Variable overhead 13600

Fixed overhead 18000

An outside supplier has offered to sell Vaughn the subcomponent for $2.60 a unit.

If Vaughn could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by

Select answer from the options below $(9850). $(6750). $14250. $(8250).