Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 3,800 meals: Amount Per Unit Sales revenue 25,840 18,628 $ 7,220 3,e40 $6.80 4.90 Costs of meals produced Gross profit Administrative costs $1.90 0.88 $ 4,180 $1.10 Operating profit Fixed costs included in this income statement are $6.004 for meal production and $760 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 $3.90 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 Requlred: a. What impact would accepting this special order have on operating profit? (Select optlon "higher" or "lower", keeping Status Quo as the base. Select "none" If there is no effect.) Status Quo 3,800 Units Alternative Difference 4,100 Units Sales revenue Variable costs Meals Administrative Contribution margin Foced costs Operating profit Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly. its cost per rear wheel assembly is as follows (based on annual production of 2,500 units): Direct materials 25 Direct labor 41 Variable overhead 28 Fixed overhead 42 $128 Total Trailblazers has offered to sell the assembly to Mobility for $105 each. The total order would amount to 2,500 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $35,800. Required: a. Prepare a schedule that shows the total differential costs. (Select optlon "higher" or "lower", keeping Status Quo as the base Select "none" If there is no effect.) Alternative Status Quo Difference Trailblazers offer 262.500 Materials Labor Variable overhead Fixed overhead applied Total costs 0 S 262,500