Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1: CRSL has a large auditorium which can cater for 300 people and is ideal for formal balls and functions. The auditorium can as well 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 to 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 an appropriate price per meal for the auditorium to continue to have the Season’s Restaurants supply meals? Describe your answer?

b) How would the transfer price change if the Seasons Restaurant had no excess capacity?

c) Describe the potential conflict between the Auditorium management and the company as a whole when it comes to making transfer pricing decisions. In your response comprise reasons as to why it not desirable for the Board of directors to get included.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91458

Have any Question? 


Related Questions in Accounting Basics

What is the difference between a significant deficiency and

What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls under t ...

Part one - sage transactionsyou will be given a fictitious

PART ONE - SAGE TRANSACTIONS You will be given a fictitious company which you will need to set up, record two months of transactions and produce financial statements for. You will need to use your professional judgement ...

1 a b and c are the members of all llc a limited liability

1. A, B and C are the members of All, LLC, a limited liability company that is treated as a partnership for federal income tax purposes. All, LLC is contemplating taking a loan of $90,000 from a local Maryland bank to fi ...

Presentation 2- separate presentations but use same

Presentation (2- Separate Presentations but use same Publicly Traded Company) ** Please use references as needed ** Create a 10- to 12-slide presentation. Choose a publicly traded company. Using the most recent SEC 10-k ...

Accountingscenariothe park family consists of the

Accounting Scenario: The Park family consists of the following: • Jackie O. Park; age 40; SSN: XXX-XX-XXXX; business analyst; single; unmarried • Leslie T. Park; age 16; SSN: 000-00-0000; daughter; high-school student; l ...

Accounting paperfor this assignment you will decide what

Accounting paper For this assignment, you will decide what type of budget to implement for a start-up company. Write a three to four page paper in which you: 1. Summarize the type of manufacturing company you plan to sta ...

Answer the following questionduring 2012 nasa co produced a

Answer the following question. During 2012, NASA Co. produced a new line of computers that carry a three-year warranty against manufacturer's defects. Based on industry experience, NASA Co. estimated warranty costs at 1% ...

Taskyou are required to complete all questions in the same

Task You are required to complete all questions, in the same sequence as listed below, and submit all workings. Follow the assignment requirements (refer below to the Requirements section above) very closely. Question 1 ...

Assignmentguidelines for individual case assignment cutting

Assignment Guidelines for Individual Case Assignment: Cutting Edge Instructions This is an individual assignment and therefore must be completed by the individual student without outside assistance. In order to complete ...

Accounting discussiona local movie theater owner explains

Accounting Discussion A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor. The owner proposes to offer a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro