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

Graph, Difference between Historigrams and Histogram

Difference between Historigrams and Histogram

Time series, time series use in indian economy

time series use in indian economy

Certificate of participation [cop), Certificate of participation [cop) A d...

Certificate of participation [cop) A debt financing agenda administered by the Office of the State Treasurer, A COP is an instrument evidencing a pro rata split in a exact pledged

Cost accounting, what is the relationship of cost accounting to financial a...

what is the relationship of cost accounting to financial and management accounting?

Why do organisations need a structure, Question 1: (a) The grouping of ...

Question 1: (a) The grouping of organisational activities (usually into ‘departments' or larger ‘divisions') will be done in different ways. Outline the criteria which can be u

What is meant by the full cost of a product, What is meant by the full cost...

What is meant by the full cost of a product? Many organizations use the expression top dollars to mean the complete creating or technology cost of a product. To this organiz

Process costing, discuss the steps in preparing product cost allocation.

discuss the steps in preparing product cost allocation.

Calculate a forecast using exponential smoothing, The Midwestern Manufactur...

The Midwestern Manufacturing Company (MMC) is a large manufacturer of electrical generators.  The firm has experienced demand for their generators as shown below: Year  Demand

Red candy, Test the claim that 10% of a candy makers candies are red. Use a...

Test the claim that 10% of a candy makers candies are red. Use a 0.05 significance and the table to answer the following questions: Find the proportion of the candies that are red?

What is univariate and bivariate data, Q. What is Univariate and Bivariate ...

Q. What is Univariate and Bivariate Data? Ans. Univariate data is data gathered about a single variable. Univariate studies could include a study of the amount paid by Am

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