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Cullumber Communications operates customer callcenter that handles bilinguiries for several arence fums Since the center is on the town where there are no restaurants within

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Cullumber Communications operates customer callcenter that handles bilinguiries for several arence fums Since the center is on the town where there are no restaurants within a 20 minute drive the company has always operated an on-cafeteria for employees. The cafeteries $165.000 in food product sach year and serves 5.000 meals per month price of each temploys five worker whose salaries and bensin 100.000 per year. Depreciation on the cafetime 520.000 per year. Other food overhead that is directly related to operating the cafeteria total 513.000 per year Ivanhoe Foss offered to take over Cumberberation. As part of the train current cafeteria mioyees would become anhos empleadlaho would out of costs to coral the cafeteria vanho ou continut to offer match and would pay Culture termal the use of its cafeteriaacilities Goetheartronderminer tolvathos Foods were the cafeteras Somehow Cullumber 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 $165,000 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 $100.000 per year. Depreciation on the cafeteria equipment is $20,000 per year. Other fred overhead that is directly related to operating the cafeteria totals $13,000 per year. Ivanhoe Foods has offered to take over Cullumber's cafeteria operations. As part of the transition, current cafeteria employees would become Ivanhoe employees, and Ivanhoe would assume all out-of-pocket costs to operate the cateteria Ivanhoe would continue to other meals at $5 each and would pay Cullumber $1 per meal for the use of its cafeteria facilities lai Calculate the net revenue from cafeteria operations and revenue from outsourcing the cafeteria to Ivanhoe Foods Net revenue from operating the cafeteria $ Revenue from outsourcing the cafeteria Should Cullumber continue to operate the employee cafeteria, or should the company accept Ivanhoe's offer? Cullumber should Iarthoe's offer

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