CM Manufacturing has provided the following unit costs pertaining to a component they manufacture and use in the production of one of their main products:  Direct materials $315 Direct labor (variable) 96 Variable manufacturing overhead  72 Fixed manufacturing overhead  29 A supplier has offered to provide the component to CM manufacturing for 500 per unit. CM Manufacturing currently has no plans to use idle space that would be created if accepting offer from supplier. Assuming that CM Manufacturing needs 2,000 components annually and the fixed manufacturing overhead is unavoidable, what would be the impact on operating income the company outsources?

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