Guggenbiller Corporation currently makes 200,000 units per year

Guggenbiller Corporation currently makes 200,000 units per year of a gasket for use in one of itsproducts. The production manager says that the part costs $3.20 per unit to make. This figure comesfrom:Direct materials $0.55Direct labor 0.20Variable manufacturing overhead 0.30Fixed manufacturing overhead 2.15Total manufacturing cost per unit 3.20An outside supplier has offered to sell Guggenbiller Corporation all 200,000 gaskets for $1.40 perunit. If Guggenbiller decides to discontinue making the gaskets and start purchasing them, $100,000of the total fixed manufacturing overhead costs could be avoided. However, shipping (not included inthe purchase cost, would be $50,000. An additional profit of $30,000 could be earned through use ofthe released facilities.Required: By how much does Guggenbiller’s income change if the outside supplier’soffer is accepted? Fully support and justify your answer.