Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume that mta sandwiches sells sandwiches for $3

Assume that MTA Sandwiches sells sandwiches for $3.75 each. The cost of each sandwich follows: Materials $ 1.10 Labor 0.40 Variable overhead 0.50 Fixed...

90.2K

Verified Solution

Question

Accounting

Assume that MTA Sandwiches sells sandwiches for $3.75 each. Thecost of each sandwich follows:

Materials$1.10
Labor0.40
Variable overhead0.50
Fixed overhead ($22,540 per month, 19,600 units per month)1.15
Total cost per sandwich$3.15


One of MTA's regular customers asked the company to fill a specialorder of sandwiches at a selling price of $2.60 each for afund-raising event sponsored by a social club at the local college.MTA has capacity to fill it without affecting total fixed costs forthe month. MTA's general manager was concerned about selling thesandwiches below the cost of $3.15 per sandwich and has asked foryour advice.

Required:

a. Prepare a schedule to show the impact onMTA's profits of providing 500 sandwiches in addition to theregular production and sales of 19,600 sandwiches per month.(Select option "higher" or "lower", keeping Status Quo asthe base. Select "None" if there is no effect.)

b. Based solely on the data given, what is thelowest price per sandwich at which the special order can be filledwithout reducing MTA's profits? (Round your answer to 2decimal places.)

Answer & Explanation Solved by verified expert
3.8 Ratings (439 Votes)
a Prepare a schedule to showthe impact on MTAs profits of providing 500 sandwiches in additionto the regular production and sales of 19600    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Post an explanation of the meaning of the following statement: "Both operating risk and profit potential for...

Medical Sciences
1.2K views

Growth and development. define the following terms: constructivism amplification scaffolding rewards reinforcement extrinsic words

Physics
1.2K views

To demonstrate Bernoulli s principle an instructor arranges two circular horizontal plates of radii b...

Geometry
1.2K views

Write an equation of the perpendicular bisector of the segment with the endpoints 3 5...

Geometry
1.2K views

31 32 33 Find the coordinates to endpoint P given the coordinates 11 10 for...

Basic Math
1.2K views

Exchange in an Island Economy Robin and Terry are stranded on a deserted island and...

Calculus
1.2K views

Problem 10 Let A be a 3 10 matrix and let B be m n...

Algebra
1.2K views

Find the complex zeros of the following polynomial function using the techniqu3f(x) = x -...

Algebra
1.2K views

The next model of a sports car will cost 4.2% less than the current model....

Algebra
1.2K views

a If t determine the quadrant in which the unit circle point P t lies...

Accounting
1.2K views

During 2021, Amblance Company reported net revenue of $2,898,000. The company reported net fixed assets...

Finance
1.2K views

GH Tiaders wrote off 71750 which represented 2066 of the amourt owed by a debtoc....