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b. Based solely on the data given, what is the lowest price per sandwich at which the special order can be filled without reduc MTA's
b. Based solely on the data given, what is the lowest price per sandwich at which the special order can be filled without reduc MTA's profits? Q Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required 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? (Enter your answer to 2 decimal places.) per sandwich Assume that MTA Sandwiches sells sandwiches for $3.70 each. The cost of each sandwich follows. Materials $ 6.96 Labor' 6.66 Variable overhead 6.56 Fixed overhead ($23,575 per' month, 26,566 units per month) 1.15 Total costs per' sandwich $3.15 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.55 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 mont MTA's general manager was concerned about selling the sandwiches below the cost of $3.15 and has asked for your advice. Required: 3. Prepare a schedule to show the impact on MTA's profits of providing 800 sandwiches in addition to the regular production and sal of 20,500 sandwiches per month. I). 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 prots? 9 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 prots of providing 800 sandwiches in addition to the regular production and sales of 20,500 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Sales revenue $ 75,850 a $ 77,890 a $ 2,040 a higher 0 Less variable costs: Materials 18,450 a 19,170 0 720 0 higher 0 Labor 12,300 9 12,730 9 480 0 higher 0 Variable overhead 10,250 a 10,550 a 400 0 higher 9 Total variable cost $ 41,000 $ 42,600 $ 1,600 Contribution margin $ 34,850 a $ 35,290 a $ 440 9 higher 0 Less: Fixed costs 23,575 9 23,575 a 0 9 none 0 Operating prot $ 11,275 a $ 11,715 a $ 440 a higher 0
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