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value: 10.00 points Assume that MTA Sandwiches sells sandwiches for $3 65 each. he cost of each sandwich follows: S 1.10 0.80 0.50 0.95 Materials Labor Variable overhead Fixed overhead ($20,900 per month, 22,000 units per month Total cost per sandwich $3.35 One of MTA's regular customers asked the company to fill a special order of sandwiches at a selling price of $2.70 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 $3.35 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 22,000 sandwiches per month (Select option "higher" or "iower keeping Status Quo as the base. Select None"i there is no effect.) Status Quo Alternative 22,000 Units 22,800 Units Difference Sales revenue Less variable costs Materials Labor Variable overhead o $ Total variable cost S Contribution margin Less: Fixed costs Operating profit 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) per sandwich st price

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