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Problem 1 b Reuben's Deli also makes cookies. It sells close to 40,000 per year. The costs are below. A bakery would like to sell

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Problem 1 b Reuben's Deli also makes cookies. It sells close to 40,000 per year. The costs are below. A bakery would like to sell its cookies to Reuben's for $1.10 per cookie. If Reuben purchased the buys versus making them, would his profits increase or decrease? Relevant Costs Materials 0.45 Labor Variable Overhead 0.24 Fixed Overhead (30% of $.40) 0.12 0.65 $ $ $ $ $ $ 1.10 Total Cost (40,000 Cookies Per Yr.) Offer by Supplier Total Cost (40,000 Cookies Per Yr.) Continue Manufaturing Purchase from Supplier Increase/Decrease in Profit S

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