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 $.30 per cookie

Labor $.30 per cookie

Variable overhead $.20 per cookie

Fixed overhead $.10 per cookie

A potential supplier has offered to sell Country Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Jason accepts the offer, what will the effect on profit be?

Note: Will profit increase or decrease and by how much?