Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent:

Direct materials $8,400
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 could avoid $3,000 of fixed overhead by accepting the offer, net income would increase (decrease) by

a) $(3,150).

b) $6,750.

c) $750.

d) $(5,850).

b) $6,750