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Vaughn Manufacturing incurs the following costs to produce 9400 units of a subcomponent: An outside supplier has offered to sell Vaughn the subcomponent for $2:85

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Vaughn Manufacturing incurs the following costs to produce 9400 units of a subcomponent: An outside supplier has offered to sell Vaughn the subcomponent for $2:85 a unit. If Vaughn could avoid 53000 of fixed overhead by accepting the offer, net income would increase (decrease) by \begin{tabular}{|} \hline$5572 \\ $(2216) \\ $(5726) \\ $572. \end{tabular}

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