Question

Assume that MTA Sandwiches sells sandwiches for $4.30 each. The cost of each sandwich follows: Materials...

Assume that MTA Sandwiches sells sandwiches for $4.30 each. The cost of each sandwich follows:

Materials $ 1.20
Labor 0.70
Variable overhead 0.40
Fixed overhead ($25,125 per month, 20,100 units per month) 1.25
Total cost per sandwich $ 3.55


One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $3.05 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 $3.55 per sandwich 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 20,100 sandwiches per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "None" if there is no effect.)

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? (Round your answer to 2 decimal places.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

| Answer States ano Alternative 20,100 units [ 20,900 units Difference saley revenue $862430 $88,870 S $2440 Higher (20.100x4

Add a comment
Know the answer?
Add Answer to:
Assume that MTA Sandwiches sells sandwiches for $4.30 each. The cost of each sandwich follows: Materials...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Assume that MTA Sandwiches sells sandwiches for $3.30 each. The cost of each sandwich follows. Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.30 each. The cost of each sandwich follows. Materials Labor Variable overhead Fixed overhead ($21,090 per month, 22,200 units per month) Total costs per sandwich $0.80 0.70 0.40 0.95 $2.85 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...

  • Assume that MTA Sandwiches sells sandwiches for $3.30 each. The cost of each sandwich follows: Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.30 each. The cost of each sandwich follows: Materials Labor Variable overhead Fixed overhead ($17,440 per month, 21,800 units per month) Total cost per sandwich $ 0.90 0.30 0.60 0.80 $2.60 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.50 each for a fund-raising event sponsored by a social club at the local college. MTA has capacity to fill it without...

  • Assume that MTA Sandwiches sells sandwiches for $3.85 each. The cost of each sandwich follows: Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.85 each. The cost of each sandwich follows: Materials Labor Variable overhead Fixed overhead (518,300 per month, 18,300 units per month) Total cost per sandwich $ 0.90 0.80 0.40 1.00 $3.10 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.85 each for a fund-raising event sponsored by a social club at the local college. MTA has capacity to it without affecting...

  • Assume that MTA Sandwiches sells sandwiches for $3.55 each. The cost of each sandwich follows. Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.55 each. The cost of each sandwich follows. Materials Labor Variable overhead Fixed overhead ($24,750 per month, 22,500 units per month) Total costs per sandwich $0.90 0.80 0.20 1.10 $ 3.00 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.45 each for a fund- raising event sponsored by a social club at the local college. MTA has capacity to fill it...

  • Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows: Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows: Materials Labor Variable overhead Fixed overhead ($22,470 per month, 21,400 units per month) Total cost per sandwich $ 0.80 0.50 0.30 1.05 $2.65 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.05 each for a fund-raising event sponsored by a social club at the local college. MTA has capacity to fill it without...

  • Assume that MTA Sandwiches sells sandwiches for $3.40 each. The cost of each sandwich follows. Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.40 each. The cost of each sandwich follows. Materials Labor Variable overhead Fixed overhead ($20,330 per month, 21,400 units per month) Total costs per sandwich $0.90 0.30 e.se 0.95 $ 2.65 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.45 each for a fund- raising event sponsored by a social club at the local college, MTA has capacity to fill it...

  • Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows. Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows. Materials $ 1.10 Labor 0.30 Variable overhead 0.30 Fixed overhead ($20,700 per month, 20,700 units per month) 1.00 Total costs per sandwich $ 2.70 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.10 each for a fund-raising event sponsored by a social club at the local college. MTA has capacity to fill it...

  • Assume that MTA Sandwiches sells sandwiches for $7.20 each. The cost of each sandwich follows. oints...

    Assume that MTA Sandwiches sells sandwiches for $7.20 each. The cost of each sandwich follows. oints $2.70 0.90 0.45 Materials Labor Variable overhead Fixed overhead ($10,800 per month, 6,000 units per month) Total costs per sandwich eBook 1.80 $5.85 References One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $5.40 each for a fund- raising event sponsored by a social club at the local college. MTA has capacity to...

  • Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows: Materials...

    Assume that MTA Sandwiches sells sandwiches for $3.10 each. The cost of each sandwich follows: Materials Labor Varable overhead Fixed overhead 522 580 per month, 18.800 units per month Total cost per sandwich $2.80 One of MTA's regular customers asked the company to fill a sancial ander of sandwiches at a saling rice of $1.90 nach for a fund-raising avant sparsored by a social dun at the local collega MTA has capacity to fill it without affecting total fixed costs...

  • Exercise 4-37 Pricing Decisions (LO 4-1, 2) Assume that MTA Sandwiches sells sandwiches for $3.40 each....

    Exercise 4-37 Pricing Decisions (LO 4-1, 2) Assume that MTA Sandwiches sells sandwiches for $3.40 each. The cost of each sandwich follows: $ 1.000 la Labor Varable overhead Fixed overhead 521,500 per month, 21.500 unils per month Total cost per sandwich One of MTA's regular customers asked the company ta filla sancial arder of sandwiches at a selling rice of $2.40 each for a fundraising avent sponsored by a social club at the local college. MTA has capacity to fill...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT