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Assume that MTA Sandwiches sells sandwiches for $3.60 each. The cost of each sandwich follows: Materials Labor Variable overhead Fixed overhead ($21,010 per month, 19,100
Assume that MTA Sandwiches sells sandwiches for $3.60 each. The cost of each sandwich follows: Materials Labor Variable overhead Fixed overhead ($21,010 per month, 19,100 units per month) $0.80 0.60 0.60 1.10 $3.10 Total cost per sandwich One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.50 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 $3.10 per sandwich and has asked for yo advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 300 sandwiches in addition the regular production and sales of 19,100 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "None" if there is no effect Status Quo Alternative 19,100 Units 19,400 Units Difference Sales revenue Required a. Prepare a schedule to show the impact on MTA's profits of providing 300 sandwiches in addition to the regular production and sales of 19,100 sandwiches per month. (Select optio "lower", keeping Status Quo as the base. Select"None" if there is no effect.) n "higher" or Status Quo 19,100 Units Alternative 19,400 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? (Round your answer to 2 decimal places.) est price per sandwich
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