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Exercise 4-35 Special Orders (LO 4-1,2) Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and eldeny people. Here is her forecasted income

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Exercise 4-35 Special Orders (LO 4-1,2) Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and eldeny people. Here is her forecasted income statement for April, when she expects to produce and sell 2,700 meals Amount $ 15,390 11,745 $ 3,645 2,160 S 1,485 Per Unit $ 5.70 435 $1.35 0.80 Sales revenue Costs of meals produced Gross profit Administrative costs Operating profit $ 0.55 Fixed costs included in this income statement are $3,645 for meal production and $540 for administrative costs. Maria has received a special request trom an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.35 per meal for 300 meals on April 10 Mara has sufficient idle capacity to n this special order These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected Required: a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" itr there is no effect.) Status Quo 2,700 Units Alternative Difference 3,000 Units Sales revenue 15,390 none 15,390 Variable costs Meals Administrative Contribution margin Fixed costs Operating profit

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