1.42 points Assume that MTA Sandwiches sells sandwiches for $3.20 each. The cost of each sandwich follows: Materials Labor Variable overhead Fixed overhead (516,910 per month, 17,800 units per month) Total cost per sandwich $ 0.90 0.40 0.30 0.95 $2.56 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $225 each for a fund-raising event sponsored by a social club at the local college. MTA has capacity to without affecting total fixed costs for the month. MTA's general manager was concerned about selling the sandwiches below the cost of $2.55 per sandwich and has asked for your advice Required: a. Prepare a schedule to show the impact on MTA's profits of providing 600 sandwiches in addition to the regular production and sales of 17,800 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "None" if there is no effect.) Status Quo 17,800 Units Alternative 18,400 Units Difference Sales revenue Less variable costs: Materials Labor Variable overhead Total variable costs Contribution margin 0 $ Less: Foxed costs Operating profit b. Based solely on the data given, what is the lowest price per sandwich at which the special order can be filed without reducing MTA's profits? (Round your answer to 2 decimal places.) Lowest price per sandwich References eBook & Resources