Exercise $4-28($Algo$)$ Pricing Decisions and Special Orders $($LO $4-1,2)$

Parkview Fish Tacos sells tacos for $$5\mathrm{.}50$ each. The cost of each taco follows:

One of Parkview's regular customers asked the company to fill a special order of tacos at a selling price of $$4\mathrm{.}50$ each for a youth

basketball tournament at the local school. Parkview has capacity to fill it without affecting total fixed costs for the month. Parkview's

general manager $($and owner and cook$)$ was concerned about selling the tacos below the cost of $$4\mathrm{.}45$ and has asked for your advice.

Required:

a$.$ Prepare a schedule to show the impact on Parkview's profits of providing $350$ tacos in addition to the regular production and sales

of $4,500$ tacos per month.

b$.$ Based solely on the data given, what is the lowest price per taco at which the special order can be filled without reducing

Parkview's profits?

Complete this question by entering your answers in the tabs below.

Required $A$

Prepare a schedule to show the impact on Parkview's profits of providing $350$ tacos in addition to the regular production and

sales of $4,500$ tacos per month.

Note: Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.