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Reuben's Dell currently makes rolls for deli sandwiches it produces. It uses 26,000 rolls annually in the production of deli sandwiches. The costs to make

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Reuben's Dell currently makes rolls for deli sandwiches it produces. It uses 26,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Materials $0.24 per roll Labor Variable overhead 0.40 per roll 0.15 per roll 0.20 per roll Fixed overhead A potential supplier has offered to sell Reuben the rolls for $0.89 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 $ -260 x decline in profit if he buys the rolls

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