Winton Corporation 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 given below:

Materials $0.24 per roll

Labor $0.40 per roll

Variable overhead $0.16 per roll

Fixed overhead $0.20 per roll

A potential supplier has offered to sell Winton the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Winton accepts the offer, what will the effect on profit be?

A.$1,200 decline in profit

B.$3,000 decline in profit

C.$3,000 increase in profit

D.$1,200 increase in profit