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Exercise 4-38 (Algo) Pricing Decisions (LO 4-1, 2) 3 Assume that MTA Sandwiches sells sandwiches for $3.80 each. The cost of each sandwich follows -6 ants Materials Labor Variable overhead Fixed overhead ($22,200 per month, 22,200 units per month) Total costs per sandwich $1.10 0.60 0.40 1.ee $ 3.10 eBook References N L VE One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.80 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 month. MTA's general manager was concerned about selling the sandwiches below the cost of $3.10 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 400 sandwiches in addition to the regular production and sales of 22,200 sandwiches per month 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? FD. Tot Complete this question by entering your answers in the tabs below. Simps each. affect require affoding Required A Required B addition to the regular produce 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? 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 profits of providing 400 sandwiches in addition sales of 22,200 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo a: there is no effect.) Difference nces Status Quo 22,200 Units Alternative 22,600 Units Sales revenue Less variable costs Materials Labor Variable overhead Total variable cost Contribution margin Less Fixed costs Operating profit WA Red Required B > Sir ea aft reg 8.40 1.08 Variable overhead Fixed overhead ($22,200 per month, 22,200 units per month) Total costs per sandwich $ 3.10 3 6 nts One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.80 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 month MTA's general manager was concerned about selling the sandwiches below the cost of $310 and has asked for your advice. eBook Required: a. Prepare a schedule to show the impact on MTA's profits of providing 400 sandwiches in addition to the regular production and sales of 22,200 sandwiches per month 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? References 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 MTA's profits? (Enter your answer to 2 decimal places.) Lowest price per sandwich