Justine Corporation currently makes rolls for deli sandwiches it produces. It uses 40,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are given below:

Materials $0.24 per roll

Labor $0.40 per roll

Variable overhead $0.16 per roll

Fixed overhead $0.20 per roll

A potential supplier has offered to sell Justine the rolls for $0.95 each. If the rolls are purchased, 20% of the fixed overhead could be avoided. If Justine accepts the offer, what will the effect on profit be?

A		$4,400 increase in profit
B		$1,200 increase in profit
C		$3,300 increase in profit
D		$3,300 decrease in profit
	E	$4,400 decrease in profit