XYZ Company makes 25,000 motors to be used in the production of its power lawn mowers. The cost per motor at this level of activity is as follows: 

direct materials .............. $ 9.50 direct labor .................. 8.60 variable overhead ............. 3.75 allocated fixed overhead ...... 4.35 total ......................... $26.20 

The motor has recently become available from an outside supplier for $25 per motor. If XYZ purchases the motor from the outside supplier, the space that is currently being used to manufacture the motor can be rented out for $50,000 per year. 

Calculate the decrease in company profits if XYZ Company accepts the outside suppliers offer.