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Waterway Industries incurs the following costs to produce 11800 units of a subcomponent: $9912 13334 Direct materials Direct labor Variable overhead Fixed overhead 14868 16200

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Waterway Industries incurs the following costs to produce 11800 units of a subcomponent: $9912 13334 Direct materials Direct labor Variable overhead Fixed overhead 14868 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)? O $(3422) O $4484 O $(10384) O $20684

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