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

Plot a histogram of sample hypnotized, Computer Project for Student Exam Sc...

Computer Project for Student Exam Scores The data in the excel spread sheet titled Data for Hypothesis Testing in the column titled Scores from Student Population represents m

What is cre, in Balance Sheet

in Balance Sheet

Barter system, Define the barter system with examples where payment is made...

Define the barter system with examples where payment is made in kind instead of cash. A barter system whereby the payment for purchases is made in kind instead of, in cash. i.e.

Find the probability that a cup of drink chosen at random, Question: (i...

Question: (i) A soft drink machine is regulated so that it fills an average of 300 cL per cup. If the amount of drink in each cup is normally distributed with standard deviati

Jurnal entry, Depreciation on the company''s equipment for 2011 is computed...

Depreciation on the company''s equipment for 2011 is computed to be $16,000.

Accounting equation, A.Austria invested cash $1,000 and a type writer $2,50...

A.Austria invested cash $1,000 and a type writer $2,500

Topic 4 Anova excel worksheet, systolic blood pressure in different age gr...

systolic blood pressure in different age groups. the following table contains a random sample of 40 women partitioned into three groups...

Data analysis, how datas are analysed

how datas are analysed

Managerial, Kody Corporation uses a job-order costing system with a plantwi...

Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:

Sampling distribution, The heights of a large population of adult females w...

The heights of a large population of adult females who play basketball are normally distributed with a mean of 175cm and a standard deviation of 7.5cm. (a) what proportion of this

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