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age director at Telco eveloped for use with its own cafeteria and to all employees 425 lunches per day the executive dining P&L for use

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age director at Telco eveloped for use with its own cafeteria and to all employees 425 lunches per day the executive dining P&L for use in his od in the employee caf- heal served, and then 8. Basil Bakal is the newly appointed food and beverage dire Industries. Telco creates and markets software apps develope iPods. The company has 500 employees and operates its own executive dining room, where it daily offers free lunches to all Basil's employee cafeteria serves between 375 and 425 lune Approximately 50 more meals per day are served in the exe room. Basil has created his own modified version of a P&L for operation. Calculate the percentages of meals served in the emu eteria and executive dining room and the costs per meal served and answer the questions that follow. a. How much more did it cost (cost of sales per meal) Basil to serve a in the executive dining room than it did in the employee cafeteria? . do you think that would be so? b. Basil's modified P&L combines all labor costs when calculating cost per meal served. Why do you think he elected not to allocate labor costs between the two serving areas? How could he do so? 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 pro- vide you with the information you need to make an informed decision about the appropriate size of this increase? lustries Food Services Department Telco Industries F. Meals Served Last Year % of Total Meals Served NUMBER OF MEALS SERVED Cafeteria Executive Dining Room Total Served 104,250 12,150 Total Cost $ Per Meal Cost $ $248,750 48,450 COST OF SALES Cafeteria Executive Dining Room Total Cost of Sales LABOR Management Staff Employee Benefits 401(k) Match 73,332 171,108 61,110 25,350 Total Labor PRIME COST OTHER CONTROLLABLE EXPENSES Direct Operating Expenses 113,515 Utilities 96,000 46,669 General & Administrative Expenses Repairs & Maintenance Total Other Controllable Expenses 21,510 nance

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