Just-A-Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: A potential supplier has offered...

Just-A-Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are:

A potential supplier has offered to sell the Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If the offer is accepted what will the effect on profit?