Explain potential conflict between management and company, Business Management

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.

 

Posted Date: 4/6/2013 6:06:59 AM | Location : United States







Related Discussions:- Explain potential conflict between management and company, Assignment Help, Ask Question on Explain potential conflict between management and company, Get Answer, Expert's Help, Explain potential conflict between management and company Discussions

Write discussion on Explain potential conflict between management and company
Your posts are moderated
Related Questions
Employee or Customer Safety: Worn out equipment is likely to fail at any moment and these failures can cause injuries to the workers working on those equipments. Products such

What is an art of classifying? Art of classifying: Classifying is a procedure of grouping transactions or entries of one nature within one place. This is completed by ope

i just need the questions at the end of all the chapters to be answered

Heineken NV is one of the world's largest beer producer, selling more beer outside the United States than its closest competitors, Anheuser-Busch and SABMiller. In 2002, only 14% o

There should be consideration of both opportunities and threats for maximum marks in each case. Award up to 3 marks for each demographic consideration. Examples of possible issues

Knowing your Learning Patterns is important primarily because (Points : 1)

a. To minimize the possibility of unanticipated production interruptions by locating or uncovering any condition which may lead to it? b. To make plant equipment and m

QUESTION 1 An effective team is one which achieves its tasks and satisfies its members. (a) Show, with examples, the characteristics of an effective team? (b) Describe ho

What are the different types of business letters? Explain with example

QUESTION The banking sector in Mauritius has changed drastically during these past 10 years. New banks have come into the market and the business environment has become very co