Preview File Edit View Go Tools Window Help CH4-Q1.png Fundamental of cost-5th.pdf X + File | C/Users/NIUSHA/Desktop/Fundamental of cost-5Th.pdf Contents 166 of 754 Q Type here to search 4-31. Special Orders 4 Inain-B 01 Mail Th a a u @ + CD Page view | A Read aloud Draw Highlight 2 Erase connect Exercises JACCOUNTING (L.0. 1, 2) 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 3,000 meals: S Amount Per Unit Sales revenue. $18,000 $6.00 Costs of meals produced. 13,500 4.50 Gross profit..... $ 4,500 $1.50 Administrative costs 2,100 0.70 Operating profit. $ 2,400 $0.80 Fixed costs included in this income statement are $4,500 for meal production and $600 for administrative costs. Maria has received a special request from an organization sponsoring a pic- nic to raise funds for the Special Olympics. This organization is willing to pay $3.50 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? b. Should Maria accept the order? 4-32. Special Orders (CPA adapted) Carlsbad Enterprises has a capacity to produce 400,000 computer cases per year. The company is (L.0.1, 2) Thu Aug 19 441 PM XX ard ions