Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that MTA Sandwiches sells sandwiches for $3.220 each. The cost of each sandwich follows. Materials se.7e e.se 0.40 Labor Variable overhead Fixed overhead ($19,380

image text in transcribedimage text in transcribedimage text in transcribed

Assume that MTA Sandwiches sells sandwiches for $3.220 each. The cost of each sandwich follows. Materials se.7e e.se 0.40 Labor Variable overhead Fixed overhead ($19,380 per month, 19,300 units per month) 1.00 2.60 Total costs per sandwich One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.20 each for a fund- raising event sponsored by a social club at the local college. MTA has capacity to fill it without affecting total fixed costs for the month MTA's general manager was concerned about selling the sandwiches below the cost of $260 and has asked for your advice. Required: a. Prepare a schedule to show the impact of 19,300 sandwiches per month. on MTA's profits of providing 500 sandwiches in addition to the regular production and sales 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule to show the impact on MTA's profits of providing 500 sandwiches in addition to the regular production and sales of 19,300 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Status Quo 19,300 Units Alternative 19,800 Units Difference 3 S 61,760 S 62,860 higher Sales revenue Less variable costs (13,860) higher (13,510) Materials (1) (9.650) Labor 1 Variable overhead S (23,160) Total variable cost (13,880) Contribution margin Less: Fixed costs Operating profit Required A Required B Answer is not complete. Complete this question by entering your answers in the tabs below. Required B Required A 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? (Enter your answer to 2 decimal places.) Lowest per sandwich price Required B Required A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions