Sarah makes cookies. She normally produces 10,000 cookies a month and incurs the following costs: direct...

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Sarah makes cookies. She normally produces 10,000 cookies a month and incurs the following costs: direct material $0.05 per cookie, direct labor $0.01 per cookie, variable overhead $0.08 per cookie, and fixed overhead of $3,000. Thus, the average total cost per cookie is $0.44. A supplier has offered to produce her cookies for her for $0.30 each. Sarah thinks $1,000 of her fixed overhead can be avoided if she accepts the offer. [ADDITIONAL INFORMATION]: Sarah thinks she could use her facilities to make biscuits instead of cookies if she accepts the supplier's offer. In this scenario, she anticipates selling 3,000 biscuits for $1 each, incurring $0.20 of variable cost, and no longer avoidign the $1,000 fixed osts. How much will Sarah's income change (positive number for increase, negative for decrease, and don't üse dollar signs) if she accepts the offer and produces biscuits? Sarah makes cookies. She normally produces 10,000 cookies a month and incurs the following costs: direct material $0.05 per cookie, direct labor $0.01 per cookie, variable overhead $0.08 per cookie, and fixed overhead of $3,000. Thus, the average total cost per cookie is $0.44. A supplier has offered to produce her cookies for her for $0.30 each. Sarah thinks $1,000 of her fixed overhead can be avoided if she accepts the offer. [ADDITIONAL INFORMATION]: Sarah thinks she could use her facilities to make biscuits instead of cookies if she accepts the supplier's offer. In this scenario, she anticipates selling 3,000 biscuits for $1 each, incurring $0.20 of variable cost, and no longer avoidign the $1,000 fixed osts. How much will Sarah's income change (positive number for increase, negative for decrease, and don't üse dollar signs) if she accepts the offer and produces biscuits?

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