Waterway Industries incurs the following costs to produce 10600 units of a subcomponent: Direct materials $8904 Direct labor 11978 Variable overhead 13356 Fixed overhead 16200 An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit. If Waterway accepts the offer, by how much will net income increase (decrease)? $20228 $4028 $(9328) $(3074)