Customer Service Chat
Get quote & make Payment
management accounting, Basic Statistics
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: 5/6/2012 3:41:35 AM | Location : United States
Ask an Expert
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
Write your message here..
Management accounting, Defination,Advantages and Limitation, Proper Managem...
Defination,Advantages and Limitation, Proper Management of company,
QNT/561, STAT QUESTION
Sample size, difference between large sample and small sample
difference between large sample and small sample
#title.central tendency., when does the mode is said to be ill defined?
when does the mode is said to be ill defined?
Cost accounting, what is the relationship of cost accounting to financial a...
what is the relationship of cost accounting to financial and management accounting?
Transition towards ifrs, Transition towards IFRS Over the last few year...
Transition towards IFRS Over the last few years, there has been a tremendous change in the world's capital markets. There has thus been a shift away from the local financial re
Sampling, What is the sampling and it importance in daily routain life. Exp...
What is the sampling and it importance in daily routain life. Explain stratify sampling
STATISTICS FOR MANAGEMENT, 1. Mention the characteristics of Statistics. Ex...
1. Mention the characteristics of Statistics. Explain any two applications of Statistics. 2. Distinguish between primary and secondary data. What are the methods of collecting prim
Precious harper, October Transactions Date Transaction Description Oct. 1 ...
October Transactions Date Transaction Description Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value com
Describe time cost of working alters of budget constraint, Suppose that an ...
Suppose that an individual has unearned income of $V and can choose how many hours she works per week at a wage of $w per hour. Assume that she has a total of 110 hours of time to
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.