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Crane Communications operates a customer call center that handles biling inquiries for several large insurance firms. Since the center is located on the outskirts of

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Crane Communications operates a customer call center that handles biling 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 alway operated an onsite cafeteria for emplovees. The cafeteria uses $198,000 in foof products ench year snd sentes 6,000 meatsper month at a prike of $5 each. It employs five workers whose salaries and benefits total $140,000 per vear. Depreciation on the cafeteria equipment is $19,000 per year, Other foued overbead that is directly related to operating the caleteria totals $14,000 per year. Cullumber Foods has offered to take over Crane's cafeteria operations. As part of the transition, current cafeteria employees would become Cullumber employees, and Cullumber would assume all out-of-pocket costs to cperate the cafeteria. Cullumber would (a) Calculate the net revenue from cafeteria operations and revenue from outsourcing the cafeteria to Cullumber foods Net revenue from operating the cafeteria Revenue from outsourcing the cafeteria 5 Should Crane continue to operate the employee cafeteria, or should the company accept Cullumber's offer? Craneshould Cullumber'soffer

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