Justine Corporation currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are given below: Materials Labor $0.24 per roll $0.40 per roll $0.16 per roll $0.20 per roll Variable overhead Fixed overhead A potential supplier has offered to sell Justine the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Justine accepts the offer, what will the effect on profit be? 0 $1,200 decline in profit $1,200 increase in profit $3,000 decline in profit O $3,000 increase in profit Wedding Supply is trying to decide whether or not to continue distributing reception supplies. The following information is available for Wedding Supply's business segments. Floral Decorations $210,000 120,000 Reception Supplies Bridal Dresses Sales $160,000 $110,000 Variable costs 84,000 50,000 Contribution margin 76,000 60,000 Direct fixed costs 50,000 20,000 Allocated common fixed costs 30,000 25,000 Net Income ($ 4,000) $ 15,000 90,000 25,000 30,000 $ 35,000 If reception supplies are dropped, floral decoration sales are expected to increase by 20%. What impact will the increase in floral decorations have on overall profitability? O Income will increase by $7,000. Income will increase by $16,000. O Income will decrease by $18,000. O Income will decrease by $8,000. 5:22 E in M