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Reuben's Dell currently makes rolls for deli sandwiches it produces. It uses 27,000 rolls annually in the production of deli sandwiches. The costs to

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Reuben's Dell currently makes rolls for deli sandwiches it produces. It uses 27,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are:- Materials Labor $0.23 per roll 0.39 per roll Variable overhead 0.15 per roll Fixed overhead 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.87 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? Reuben would see a s decline v in profit if he buys the rolls.

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