4 Assume that MTA Sandwiches sells sandwiches for $3.20 each. The cost of each sandwich follows....

 

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4 Assume that MTA Sandwiches sells sandwiches for $3.20 each. The cost of each sandwich follows. 2 points Materials Labor eBook Variable overhead Fixed overhead ($17,850 per month, 21,000 units per month) Total costs per sandwich $0.80 0.60 0.40 0.85 $2.65 Print References One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.35 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 $2.65 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 800 sandwiches in addition to the regular production and sales of 21,000 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? 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 800 sandwiches in addition to the regular production and sales of 21,000 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Sales revenue Less variable costs: Materials Labor Variable overhead Total variable cost Contribution margin Less: Fixed costs Operating profit Status Quo 21,000 Units Alternative 21,800 Units Difference < Required A Required B > Chec 4 Assume that MTA Sandwiches sells sandwiches for $3.20 each. The cost of each sandwich follows. 2 Materials Labor points Variable overhead Fixed overhead ($17,850 per month, 21,000 units per month) Total costs per sandwich $0.80 0.60 0.40 0.85 $2.65 eBook Print References One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.35 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 $2.65 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 800 sandwiches in addition to the regular production and sales of 21,000 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? 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 can be filled without reducing MTA's profits? (Enter your answer to 2 decimal places.) Lowest price per sandwich < Required A Required B > 2 5 Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): points Direct materials eBook $ 28 Direct labor Variable overhead Fixed overhead 109 17 39 Total $193 Print References Trailblazers has offered to sell the assembly to Mobility for $162 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $35,650. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Trailblazers' offer Materials Labor Variable overhead Fixed overhead applied Total costs Status Quo Alternative Difference b. Should Mobility make rear wheel assemblies or buy them from Trailblazers? Buy Make Che 4 Assume that MTA Sandwiches sells sandwiches for $3.20 each. The cost of each sandwich follows. 2 points Materials Labor eBook Variable overhead Fixed overhead ($17,850 per month, 21,000 units per month) Total costs per sandwich $0.80 0.60 0.40 0.85 $2.65 Print References One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.35 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 $2.65 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 800 sandwiches in addition to the regular production and sales of 21,000 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? 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 800 sandwiches in addition to the regular production and sales of 21,000 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Sales revenue Less variable costs: Materials Labor Variable overhead Total variable cost Contribution margin Less: Fixed costs Operating profit Status Quo 21,000 Units Alternative 21,800 Units Difference < Required A Required B > Chec 4 Assume that MTA Sandwiches sells sandwiches for $3.20 each. The cost of each sandwich follows. 2 Materials Labor points Variable overhead Fixed overhead ($17,850 per month, 21,000 units per month) Total costs per sandwich $0.80 0.60 0.40 0.85 $2.65 eBook Print References One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.35 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 $2.65 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 800 sandwiches in addition to the regular production and sales of 21,000 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? 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 can be filled without reducing MTA's profits? (Enter your answer to 2 decimal places.) Lowest price per sandwich < Required A Required B > 2 5 Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): points Direct materials eBook $ 28 Direct labor Variable overhead Fixed overhead 109 17 39 Total $193 Print References Trailblazers has offered to sell the assembly to Mobility for $162 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $35,650. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Trailblazers' offer Materials Labor Variable overhead Fixed overhead applied Total costs Status Quo Alternative Difference b. Should Mobility make rear wheel assemblies or buy them from Trailblazers? Buy Make Che