Reuben'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

$$0\mathrm{.}24$ per roll

Labor

$0\mathrm{.}40$ per roll

Variable overhead

$0\mathrm{.}16$ per roll

Fixed overhead

$0\mathrm{.}20$ per roll

A potential supplier has offered to sell Reuben the rolls for $$0\mathrm{.}90$ each. If the rolls are

purchased, $30\%$ of the fixed overhead could be avoided. If Reuben accepts the offer,

what will the effect on profit be$?$

a$,$ Profits will increase by $$3,000$

b$,$ Profits would decrease by $$3,000$

c$,$ Profits will decrease by $$1,200$

d$,$ Profits would increase by $$1,200$