The Mead Meals on Wheels Center (MMWC) provides meals every day to the homebound elderly. The city of Wabash pays MMWC $32 per week for each person it serves. There is no shortage of demand for MMWC's services among the elderly citizens of Wabash, and MMWC can find qualified recipients for as many meals as it can deliver. Each person helped by MMWC receives two hot meals per day, seven days per week, for a total of 14 meals every week. To service the contract, MMWC has a central kitchen that has the capacity to produce a maximum of 9,600 meals per day. It costs MMWC an average of $36,000 per week to operate the kitchen and other central facilities regardless of the number of meals that MMWC serves. This covers all of MMWC's fixed costs (e.g., rent, equipment costs, and its personnel including administrative staff) as well as its fixed seasonal service contract costs (utilities, snow removal, etc.). The first problem that MMWC faces is figuring out how much it can afford to spend per person, per week for food to supply the program. Food is MMWC's only variable expense. You are MMWC's only program analyst. Question 3: Prepare an analysis of variances for the first quarter of the year to help her understand what caused the differences between the results. Provide her with as much detail as you can given the available information, that is, volume variance, price variance, and quantity variance. Be sure to indicate whether those variances were favorable or unfavorable. Don't forget to look at the fixed-cost variance as well. a. Prepare a revenue variance analysis. b. Prepare a food expense variance analysis. c. Calculate the net impact of the severe winter weather and lower food prices on MMWC's first quarter result. Was MMWC better off or worse off? d. Was the overall aggregate variance large enough to have a significant impact on MMWC during the first quarter? Is it significant when compared to projected annual profits or losses? During the year, you conducted an analysis of MMWC's kitchen operations and determined that you could increase the capacity of the kitchen to 10,400 meals per day. You see a chance to increase the number of meals that MMWC can deliver to the elderly, as well as a way to increase your weekly revenue. However, expanding the kitchen's capacity will require you to purchase $700,000 worth of equipment. The equipment has a useful life of five years. The executive director is interested in any idea that will expand service delivery. But, she is concerned about being able to pay for the equipment. She tells you that MMWC's cost of capital is 9 percent and asks if MMWC should purchase the equipment