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provides meals that nonprofit organizations distrib fere is her forecasted income statement for to hand 4-37.Pricing Decisi Assume that MTA follows t for April, When

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provides meals that nonprofit organizations distrib fere is her forecasted income statement for to hand 4-37.Pricing Decisi Assume that MTA follows t for April, When she ex Lo 41,2) 435 Special Onders and elderly people H Marias Food Service provides Amount Per Unit Mater Labo Sales revenue Costs of meals produced. Gross proft $18,000 $6.00 13.5004.50 4,500 $1.50 0.70 Administrative costs . $ 2400 $0.80 One of MT selling price lege. MTA eral mana asked for Operating profit included in this income statement are $4,500 for meal production costs Maria has received a special request from an organizatiand s6 $600 fo Fixed costs admini spon nsorn pinic to raise funds for the Special Olympics This organization is willing to pay s3ia meal for 300 meals on April io. Maria has sufficient idle capacity to fill this s $3.50 p special dministr Require a. Pre These meals will incur all of the variable costs of meals produced, but variable adrmio costs and total fixed costs will not be affected Reguired 1. B a What h Should Maria accept the order? Vhat impact would accepting this special order have on operating profit C. (CPA adapted 041,2) 4-36. Special Orders Alpine Luggage has a capacity to produce 200,000 suitcases per year. The compan y is

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