Blossom Communications operates a customer call center that handles billing inquiries for several large insurance firms. Since the center is located on the outskirts of town, where there are no restaurants within a 20-minute drive, the company has always operated an on-site cafeteria for employees. The cafeteria uses $135,000 in food products each year and serves 5,000 meals per month at a price of $5 each. It employs five workers whose salaries and benefits total $140,000 per year. Depreciation on the cafeteria equipment is $17.000 per year. Other fixed overhead that is directly related to operating the cafeteria totak $12000 per year. Crane Foods has offered to take over Blossom's cafeteria operations. As part of the transition, current cafeteria employees would become Crane employees, and Crane would assume all out-of-pocket costs to operate the cafeteria, Crane would continue to offer meals at $5 each and would pay Blossom $1 per meal for the use of its cafeteria facilities. Calculate the net revenue from cafeteria operations and revenue from outsourcing the cafeteria to Crane Foods Net revenue from operating the cafeteria $ 13000 Revenue from outsourcing the cafeteria $ 60000 Should Blossom continue to operate the employee cafeteria, or should the company accept Crane's offer? Blossom should accept Crane's offer. Assume that Blossom accepted Crane's offer two years ago and that all costs have remained constant. Since thena 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 2,200 meals per month, and Crane has laid off two of the five cafeteria workers 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 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 Blossom to renew Crane's contract for another year, or should it resume operation of the cafeteria operation and charge the proposed $ per meal price? The company resume the operation of the cafeteria