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Maria's Food Service provides meals that nonprofit organizationsdistribute to handicapped and elderly people. Here is herforecasted income statement for April, when she expects to produceand sell 3,200 meals: Amount Per Unit Sales revenue $ 19,840 $ 6.20Costs of meals produced 14,720 4.60 Gross profit $ 5,120 $ 1.60Administrative costs 2,240 .70 Operating profit $ 2,880 $ .90 Fixedcosts included in this income statement are $4,864 for mealproduction and $640 for administrative costs. Maria has received aspecial request from an organization sponsoring a picnic to raisefunds for the Special Olympics. This organization is willing to pay$3.60 per meal for 300 meals on April 10. Maria has sufficient idlecapacity to fill this special order. These meals will incur all ofthe variable costs of meals produced, but variable administrativecosts and total fixed costs will not be affected. Required: a. Whatimpact would accepting this special order have on operating profit?b. From an operating profit perspective for April, should Mariaaccept the order? Yes No Could you list steps as well so I canunderstand every number

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Jarrod Robel
Jarrod RobelLv2
28 Sep 2019

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