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Why is my answer wrong. Please show step by step solution File Edit View History Bookmarks Window Help Check Your Work Maria's Food Service provides

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Why is my answer wrong. Please show step by step solution
File Edit View History Bookmarks Window Help Check Your Work Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April, when she expects to produce and sell 3,900 meals: Sales revenue Costs of meals produced Gross proft Administrative costs Amount Per Unit $ 26,910 6.90 4.96 7,605 1.95 0.80 19,305 3,120 Operating profit $ 4,485 1.15 Fbxed costs included in this income statement are $7,605 for meal production and $780 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 $3.95 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. Required a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Answer is complete but not entirely correct Status Alternative 4,200 Units Quo 3,900 Sales revenue Variable costs 900highera 105higher __ . 106 higher 1,170 2,340 Meals 12,600 2,520180higher Administrative Contribution margin Fixed costs Operating profit 12.870 12,9750$ 8,385 Q 8,385 4,485S 4,590 none

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