a sortware app E F G H B D 3 Basil Bakal is the newly appointed food and beverage director at Telco Industries. Telco creates and markets software apps developed for use with iPods. The company has 500 employees and operates its own cafeteria and executive dining room, where it daily offers free lunches to all employees, Basil's employee cafeteria 5 serves between 375 and 425 lunches per day. Approximately 50 more meals per day are served in the 6 executive dining room. Basil has created his own modified version of a P&L for use in his operation Calculate 7 the percentages of meals served in the employee cafeteria and executive dining room and the costs. per meal served, and then answer the questions that follow. 8 9 10 Telco Industries Food Services Department Meals Served % of Total Meals 11 Last Year Served 12 NUMBER OF MEALS SERVED 13 Cafeteria 104,250 14 Executive Dining Room 12.150 15 Total Served 116,400 16 Total Cost $ Per Meal Costs 17 COST OF SALES 18 Cafeteria $248,750 19 Executive Dining Room 48,450 20 Total Cost of Sales LADA Q1 Q2 Q5 Q7 Q8 09 *** E F G H B C 18 Cafeteria $248,750 19 Executive Dining Room 48,450 20 Total Cost of Sales 21 LABOR 22 Management 73,332 23 Staff 171,108 24 Employee Benefits 61.110 25 401(k) Match 25,350 26 Total Labor 27 PRIME COST 28 OTHER CONTROLLABLE EXPENSES 29 Direct Operating Expenses 113,515 30 Utilities 96,000 31 General & Administrative Expenses 46,669 32 Repairs & Maintenance 21,510 33 Total Other Controllable Expenses 34 35 a How much more did it cost (cost of sales per meal) Basil to serve a meal in the executive dining 36 room than it did in the employee cafeteria? Why do you think that would be so? 37 SO e newly appointed food and beverage director at Telco Industries. Telco creates and markets software apps develope B 35 a. How much more did it cost (cost of sales per meal) Basil to serve a meal in the executive dining D E F G 36 room than it did in the employee cafeteria? Why do you think that would be so? 37 38 39 Answer 40 41 42 43 44 b. Basi's modified P&L combines all labor costs when calculating cost per meal served. Why do 45 you think he elected to not allocate labor costs between the two serving areas? How could he do so? 47 48 Answer 49 50 51 52 53 Assume you were on the board of directors of Telco. How would you decide how much more 54 money you should allocate to Basil's area next year to account for rising food prices? Who would Q1 Q2 05 07 08 09 D E F B C. Assume you were on the board of directors of Telco. How would you decide how much more money you should allocate to Basil's area next year to account for rising food prices? Who would you expect to provide you with the information you need to make an informed decision about the appropriate size of the increase? Answer 1 2 3 4 5 6 -7 8 59