V&V Corporation manufactures 20,200 components per year.  Co…

V&V Corporation manufactures 20,200 components per year.  Cost data follows: Direct Materials, $102,000         Variable Overhead, $61,000 Direct Labor, $162,000 Fixed Overhead, $81,000 Bev Enterprises has offered to manufacture the component for V&V Corporation for $18/unit.  If V&V purchases the component from Bev, the additional unused capacity could be rented out for $11,000.  If V&V outsources the production of the component, the effect on its net income would be: