Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8400 Direct Labor       $11,250 Variable overhead  $12,600 Fixed overhead   $16,200 An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit. If Clemente accepts the offer, by how much will net income increase (decrease)?     $3,750   $19,950   $(8,850)   $(2,850)

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