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Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The...

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Accounting

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Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 2300 meals: Sales revenue Costs of meals produced Gross profit Administrative costs Operating profit Amount $ 12, 190 9,545 $ 2,645 1,150 $ 1,495 Per Unit $5.30 4.15 $1.15 0.50 $9.65 Fixed costs included in this income statement are $3,289 for meal production and $460 for administrative costs, Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics This organization is willing to pay $315 per meal for 300 meals on April 10. Maria has sufficient de 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? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Status Quo 2,300 Units Alternativo 2,500 Units Difference Sales reverse Variable costs Meals Administrative Contnbution margin Fixed costs Operating profit

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