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affecting total fixed costs for the month. MTA's general manager was concerned about selling the sandwiches below the cost of $2.55 and has asked for your advice.

Required:

a. Prepare a schedule to show the impact on MTA's profits of providing 400 sandwiches in addition to the regular production and sales of 20,800 sandwiches per month.

Prepare a schedule to show the impact on MTAs profits of providing 400 sandwiches in addition to the regular production and sales of 20,800 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

	Status Quo 20,800 Units	Alternative 21,200 Units	Difference
Sales revenue
Less variable costs:
Materials
Labor
Variable overhead
Total variable cost
Contribution margin
Less: Fixed costs
Operating profit

b. Based solely on the data given, what is the lowest price per sandwich at which the special order can be filled without reducing MTA's profits?