Assume that Sheridan accepted Sunland's offer two years ago and that all costs have remained constant. Since then, a new

shopping mall has opened close to the company's location, bringing in several fast$-$food and quick$-$service restaurants. Employee

demand for cafeteria service has dropped to $2,500$ meals per month, and Sunland has laid off two of the five cafeteria workers. To

offset the lower demand for meals, Best Ever is proposing to increase the price per meal from $$5$ to $$6$ per meal. Does it make

financial sense for Sheridan to renew Sunland's contract for another year, or should it resume operation of the cafeteria operation

and charge the proposed $$6$ per meal price?

Calculate net revenue from operating the cafeteria and the revenue from outsourcing the cafeteria.

Net revenue from operating the cafeteria

Revenue from outsourcing the cafeteria

The company

resume the operation of the cafeteria.Assume that Sheridan accepted Sunland's offer two years ago and that all costs have remained constant. Since then, a new shopping mall has opened close to the company's location, bringing in several fast$-$food and quick$-$service restaurants. Employee demand for cafeteria service has dropped to $2,500$ meals per month, and Sunland has laid off two of the five cafeteria workers. To offset the lower demand for meals, Best Ever is proposing to increase the price per meal from $$5$ to $$6$ per meal. Does it make financial sense for Sheridan to renew Sunland's contract for another year, or should it resume operation of the cafeteria operation and charge the proposed $$6$ per meal price?

Calculate net revenue from operating the cafeteria and the revenue from outsourcing the cafeteria.

Net revenue from operating the cafeteria

Revenue from outsourcing the cafeteria

$

$

The company

~

resume the operation of the cafeteria.