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

Ruels, pzl give me ans

pzl give me ans

Bunco toss, The game of "Bunco" is played with three standard dice. "Bunco"...

The game of "Bunco" is played with three standard dice. "Bunco" occurs when all three dice show the same number of spots. What is the probability of tossing a "Bunco" on the first

What is Appropriation , What is Appropriation A legal endorsement for an ...

What is Appropriation A legal endorsement for an organization to make expenses for particular requirements from particular options available or approximated to be available durin

#test, The AM of 10 numbers are 20 and 30 numbers are 60 then find AM of co...

The AM of 10 numbers are 20 and 30 numbers are 60 then find AM of combined data

Normal distribution, Lifts usually have signs indicating their maximum capa...

Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads “maximum capacity 1400kg or 20 persons”. Suppose that the weights of lift-users are

IET 3339, 1. If each sample taken has 500 units, and the average proportio...

1. If each sample taken has 500 units, and the average proportion nonconforming is 0.034, what is the upper and lower control limits for the p-chart? 2. If you sample 450 parts

Revenue Recognition & Depreciation, Question 2 Pankratov Lakes is a new rec...

Question 2 Pankratov Lakes is a new recreational real estate development that consist of 500 Lake front and lake view lots. As a special incentive to the first 100 buyers of lake v

Write Your Message!

Captcha
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!

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