Cost accounting: Assume that MTA Sandwiches sells sandwiches for $3.25 each. The cost of each sandwich follows: Materials $1.10, Labor $0.20, Variable Overhead $$0.30, Fixed overhead ($18,000 per month, 1800 units per month) $1.00 Total cost per sandwich $$2.60 One of MTA's regular customer asked the company to fill a special order of sandwiches at a selling price of $2.25 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 $2.60 per sandwich and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 600 sandwiches in addition to the regular production and sales 0f 18,000 sandwiches per month.

Question
Cost accounting: Assume that MTA Sandwiches sells sandwiches for $3.25 each. The cost of each sandwich follows: Materials $1.10, Labor $0.20, Variable Overhead $$0.30, Fixed overhead ($18,000 per month, 1800 units per month) $1.00 Total cost per sandwich $$2.60 One of MTA's regular customer asked the company to fill a special order of sandwiches at a selling price of $2.25 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 $2.60 per sandwich and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA's profits of providing 600 sandwiches in addition to the regular production and sales 0f 18,000 sandwiches per month.

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Accounting For Decision Making

Cost allocation and revenues

Cost Accounting

Cost Management

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