User Account

All Pages

management accounting, Basic Statistics

Assignment Help:
Q. CRSL has a large auditorium which can cater for 300 people and is ideal for formal balls and functions. The auditorium can also be reconfigured to cater for 100 people. The Seasons Restaurant supplies the meals to the auditorium at $20.00 per meal. The manager from Seasons Restaurant has advised the manager of the auditorium that prices will increase as of next month to $30.00 per meal. The auditorium manager is concerned that hosting events will not be viable and has looked into outsourcing the meals to a mobile catering service who will charge $22.50 per meal. The variable cost per meal is $17.50. Seasons Restaurant has capacity to continue to offer the meals.
The Auditorium manager is seeking approval to buy the meals from an outside caterer and has looked to you to help support the move.
Required:
a) What would be a suitable price per meal for the auditorium to continue to have the Season’s Restaurants supply meals? Explain your answer?
b) How would the transfer price change if Seasons Restaurant had no excess capacity?
c) Explain the potential conflict between the Auditorium management and the company as a whole when it comes to making transfer pricing decisions. In your response include reasons as to why it not desirable for the Board of directors to get involved.

Related Discussions:- management accounting

Analytical chemistry, a prosecuting attorney in a criminal case presented a...

a prosecuting attorney in a criminal case presented as principal evidence small fragment of glass found imbedded in the coat of the accused.the attorney claimed that the

meanings of statistics by different authors, meanings of statistics by dif...

meanings of statistics by different authors and importance of statistics in the field of Education

Calculate strengths and weaknesses , In the 2009 baseball season, the team ...

In the 2009 baseball season, the team that finished the regular season with the best record in the National League was the Los Angeles Dodgers, with a record of 95-67. (For those o

#mode, how to find mode graphically when the biggest rectangle is at the en...

how to find mode graphically when the biggest rectangle is at the end

Central tendency, List down various measures of central tendency and explai...

List down various measures of central tendency and explain the difference between them?

Measures of variability, what is measures of variability?

what is measures of variability?

Accounting for partnerships and limited liability companies, Tim Snyder and...

Tim Snyder and Jay Wise have decided to form a partnership. They have agreed that Snyder is to invest 30000 and Wise is to invest 40000. Snyder is to devote full time to the busi

Assignment, How much it will cost to get an assignment

How much it will cost to get an assignment

Closing Stock , How to calculate closing stock in Tally while we are postin...

How to calculate closing stock in Tally while we are posting with inventory.

Ordering cost, 1) Define and explain the following: i) Ordering cost ii) Sa...

1) Define and explain the following: i) Ordering cost ii) Safety stock iii) Re-order point 2) Profit Volume Chart. 3) Discuss the various techniques of financial statement analysis

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd