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Problem 4 Amanda's Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs

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Problem 4 Amanda's Deli 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: Materials Labor Variable overhead Fixed overhead $0.24 per roll $0.40 per roll $0.16 per roll $0.20 per roll A potential supplier has offered to sell Amanda the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. A. If Amanda accepts the offer, what will the effect on profit be? Show and label your worl srcocbr Yasin Joubo molto B. Assume the same facts except that if Amanda accepts the offer she will be able to use the freed space and time to make potato salad. This new product will generate $3,000 in profit annually. What will the effect on profit be? Show and label your work

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