management accounting, Basic Statistics

Assignment Help:
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

Court-ordered withholdings, Court-ordered withholdings Paycheck account...

Court-ordered withholdings Paycheck accounting also includes withholdings for items other than payroll taxation. For example, legal courts of law may purchase business employer

Calculates the value of variance and standard deviation, You are a psycholo...

You are a psychologist who has collected the subjective well-being scores of a number of elderly people aged 90 or above who are residents of an independent living facility or who

Definition of batch costing and methods, Batch costing and method of costin...

Batch costing and method of costing whereby identical units produced are treated as a single unit & the cost incurred is shown to the whole of that batch instead of each individual

Aggressive growth fund, Define Aggressive Growth Fund: A mutual fund which ...

Define Aggressive Growth Fund: A mutual fund which is primary investment intention is substantial capital gains. The return & principal value of mutual funds fluctuate with changes

Define Betterment, Define Betterment An inclusion created to, or modify cr...

Define Betterment An inclusion created to, or modify created in, an investment resource, other than servicing, that is estimated to improve its predicted useful life or to improve

#titlelinear regression.., regression line drawn asY=C+1075x,when x was 2,a...

regression line drawn asY=C+1075x,when x was 2,and y was239,given that y intercept was11.calculate the residual.

Journalizing confusing transaction, How would you journalize this transacti...

How would you journalize this transaction? Purchased used truck for $6,240, paying $3,120 cash and the balance on account.

Probability, Consider the two events A and B with P(A) = 0.4 and P(B) = 0.3...

Consider the two events A and B with P(A) = 0.4 and P(B) = 0.3. (a) If A and B are independent then compute the probability that Both A and B happen

Write Your Message!

Captcha
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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd