management accounting, Basic Statistics

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.
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: 5/3/2012 11:16:21 AM | Location : United States

Related Discussions:- management accounting, Assignment Help, Ask Question on management accounting, Get Answer, Expert's Help, management accounting Discussions

Write discussion on management accounting
Your posts are moderated
Related Questions
A. Describe what a z score is. B. Explain why they can be used to compare scores from different distributions.

SkyyMarley Airlines has determined that the price elasticity of demand for two customer segments (Coach and Business Class) is -1.35 and -2.50.  Based on their expectations of prof

3. In a management class of 100 students’ three languages are offered as an additional subject viz. Hindi, English and Kannada. There are 28 students taking Hindi, 26 taking Hindi

A study done at the University of Maryland (cited in Weiss, Introductory Statistics, 7th ed, 2005) measured the body temperatures of 93 healthy humans. On the frequency- histogram

example of descriptive and inferential statistics?

You are working for the management of ESK Jewellery as a marketing consultant. The main business of ESK Jewellery is the retailing of diamond jewellery. They opened their first sho

Study A                              Study B r = .64                          r = .77 df = 18                         df = 121 p 1. In using the data from study A to m

Difference between an unadjusted trial balance and an adjusted trial balance? The variations between unadjusted test stability and altered test stability are the amounts registe

if the class intervals of data are equal. though it is ranges,do we have to use bar charts keeping a same space between bars or a histogram?

tools and techniques used in quantitative research