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

Median, median

median

Time series, Explain how you would decide whether to use the additive model...

Explain how you would decide whether to use the additive model or the multiplicative model to analyse a time series.

Time seires, explain time series analysis

explain time series analysis

Descriptive statistics, The descriptive statistics outputs for both the var...

The descriptive statistics outputs for both the variables are as below: Wii Group Mean 95.8 Standard

Hierarchical clustering , Hierarchical Clustering   Five, two-dimens...

Hierarchical Clustering   Five, two-dimensional data points are shown below: x y -0.43 1.19 -1.66 1.1

Frequcency, how can we construct a bivariate frequency distribution

how can we construct a bivariate frequency distribution

Requisites of a good average, explain requisites of good average

explain requisites of good average

Frequency distributions and graphs, What methods did you consider when putt...

What methods did you consider when putting the data into a more useable format

Are depreciation, Are depreciation, depletion and amortization similar? ...

Are depreciation, depletion and amortization similar? In accounting the terms depreciation, depletion and amortization often involve the movement of costs from the balance s

BUSINESS FORECASTING., a) What is analysis of variance? What are the assump...

a) What is analysis of variance? What are the assumptions of this technique? b) Three samples below have been obtained from normal populations with equal variances. Test the hypoth

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