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Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows: Materials Labor Varable overhead Fixed overhead 522 580 per month,
Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows: Materials Labor Varable overhead Fixed overhead 522 580 per month, 18.800 units per month Total cost per sandwich $2.80 One of MTA's regular customers asked the company to fill a sancial ander of sandwiches at a saling rice of $1.90 nach for a fund-raising avant sparsored by a social dun at the local collega MTA has capacity to fill it without affecting total fixed costs for the month. MTA'S general inanager was concerned about saling the sandwiches below the cost of $2.80 per sandwich and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 800 sandwiches in addition to the regular production and sales of 18,800 sandwiches per month (Select option "higher or "lowerkeeping Status Quo as the base. Select "None" If there is no effect) 18.800 Units 19.500 Units Difference Sales revenue Less varble cous Materials Labar Variable overhead Total variable cost S Contribution margin LARR F inals Dparating profit o l $ 0 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 dich
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