Your Corporation manufactures laser printers. It currently manufactures the 32,000 imaging drums that it uses in its printers. The annual costs to manufacture these 32,000 drums are as follows:

Cost/unit Total Cost

Variable manufacturing costs. $23 $736,000

Fixed manufacturing costs $65 $2,080,000

Total costs $88 $2,816,000 Another company has offered to provide Your Corporation with all of its imaging drum needs for $72 per drum. If Your Corporation accepts this offer, 70% of the fixed manufacturing cost above could be totally eliminated. It will also be able to use the freed up space to generate $240,000 of income each year in the production of alternative products. If the offer is accepted, what would be the annual change in the company's overall net operating? It the change is a decrease, enter your number with a in front. Otherwise, just enter the number.