User Account

All Pages

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

Women tend to work out together, You notice at the gym that it appears more...

You notice at the gym that it appears more women tend to work out together, while more men tend to work out alone.  To show whether this difference is significant, you collect data

Capital projects funds, Capital projects funds Capital projects funds are ...

Capital projects funds Capital projects funds are used to account for the acquisition &/or structure of major capital facilities [other than those financed by proprietary funds &

Projectile, two object are on the same level we release the first one verti...

two object are on the same level we release the first one vertically and the other one with an initial velocity which object will land first?

Requisites of a good average, explain requisites of good average

explain requisites of good average

Adjusted present value, what is base case NPV?

what is base case NPV?

Classification of raw data with example tables, Classification of raw data ...

Classification of raw data on the basis of homogeneous characteristics

Jurnal entry, Depreciation on the company''s equipment for 2011 is computed...

Depreciation on the company''s equipment for 2011 is computed to be $16,000.

I want expert opinion, hi i just want to knw my husband done b.com n doing ...

hi i just want to knw my husband done b.com n doing job as a accountant in private firm can u suggest me it is better for my husband to do m.ba or either some professional course

Accounting help tips, Solving accounting assignments

Solving accounting assignments

How to define assets?, how to define assets?

how to define assets?

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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