Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April, when she expects to produce and sell 2,300 meals: Sales revenue Costs of meals produced Gross profit Administrative costs Operating profit Amount $ 12,190 9,545 $ 2,645 1,150 $ 1,495 Per Unit $ 5.30 4.15 $ 1.15 0.50 $ 0.65 Fixed costs included in this income statement are $2,645 for meal production and $460 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.15 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill 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" If there is no effect.) Status Quo 2,300 Units $ 12,190 Alternative 2,600 Units Difference Sales revenue Variable costs: Meals Administrative Contribution margin Fixed costs Operating profit : LLL $ 1,495 Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Original $33,300 23,310 $ 9,990 4,300 $ 5,690 Strawberry $42,300 38,070 $ 4,230 6,000 $ (1,770) Orange $51,000 40,800 $10,200 7,400 $ 2,800 Required: a. Prepare a differential cost schedule. Status Quo Alternative: Drop Strawberry Difference (all lower under the alternative) Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss)