Refer to problem 35.

Required:

a. Before proceeding to requirement

b. of this problem, indicate the information in addition to that provided in Problem 35 required to perform account analysis.

b. Now assume that Quality Meals had the following breakdown of costs for the 16 months reported in problem 35:

What are the cost driver rates for ( 1 ) m eals produced, (2) deliveries, (3) VIP sen ices, (4) new customers, and (5) new products developed using account analysis?

c. What are the estimated costs for a month assuming the following level of costdriver volumes? (Don't forget to include the facilities-level costs in your estimate.)

d. Quality Meals is considering outsourcing delivery. Compared to your answer in requirement

c, how much would the company save by outsourcing the delivery service (before considering the cost of outsourcing)?

Transcribed Image Text:

Total costs of meals produced Total costs for delivering.. Total costs of VIP services Total costs of developing new customers $334,368 164.400 140.352 154.904 Total costs of developing new products 18.700 Total facilities-level costs (total for all 16 months) 159,377 Total costs $972,101