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Country Diner currently makes cookies for its boxed lunches. It uses 40.000 cookies annually in the production of the boxed lunches. The costs to make

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Country Diner currently makes cookies for its boxed lunches. It uses 40.000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: Materials $0.30 per cookie Labor 0.30 per cookie Variable overhead 0.20 per cookie Fixed overhead 0.10 per cookie Apotential supplier has otTered to sell Country Diner the cookies for $0.35 each. lfthe cookies are purchased. 10% of Ihe xed overhead could be avoided. It Country Diner accepts the offer. what will the eect on prot be? NOTE: Enter amounts rounded to the nearest whole dollar. Total relevant costs 5 32400 Cost to buy 8 3400 x Recommendation : EtTect of buying rather than making 35 1600 ii : in profit

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