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Section B: Special Orders/Pricing Decisions Assume that ASU Sandwiches sells sandwiches for $7.20 each. follows The cost of each sandwich $2.70 0.90 0.45 Fixed overhead

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Section B: Special Orders/Pricing Decisions Assume that ASU Sandwiches sells sandwiches for $7.20 each. follows The cost of each sandwich $2.70 0.90 0.45 Fixed overhead ($ 10,800 per month, 6,000 units per month) 180 .S5.85 Materials Labor Variable overhead Total costs per sandwich One of ASU's regular customers asked the company to fill a special order of sandwiches at ia selling price of $5.40 each for a fund-raising event sponsored by the accounting club in thenonth College of Business. ASU has capacity to fill it without affecting total fixed costs for the mon ASU's general manager was concerned about selling the sandwiches below the cost of $5.85 and has asked for your advice Prepare a schedule to show the impact on ASU's profits of providing 400 sandwiches in addition to the regular production and sales of 6,000 sandwiches per month. 1. 2. What is the lowest price per sandwich at which the special order can be filled without reducing ASU's profits? What other factor might the general manager want to consider in setting a price for this special order

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