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.
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: 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
Soddy and Rutherford, from their experimental study regarding the radioactive disintegration formulated the following laws, known as laws of radioactive disintegration. 1. Radioac

U.S. College presidents have described alcohol abuse as the number one problem on campus.  How common is it?  As a super crackerjack student, you conducted a survey of 17,096 stude

any of your writer able to use the database given to generate the null, alternative..etc.. into a power point presentation

advantages an d disadvantages of various measures o f dispersion

Characteristics of index number

Q1. If you throw a coin 5 times, what is the probability of: - throwing 5 heads - throwing 4 tails - throwing 3 heads and 2 tails Q2. Construct a tree diagram to verify your ans

Description of Sample at Baseline 1. Describe the sample characteristics and baseline values, comparing the two groups'characteristics. With any analysis, the first step

A study of long term phone calls made from general electricss corporate headquarters in fairfeild, conneticuit, revealed the length of the calls, in minutes follows the normal prob

I need help with ledger accounts and the financial statement

Quota Sampling: in stratified the cost of taking random samples from individual strata is often so expensive that interviewers are simply give quota to be filled from different str