Help solve pls

More info Recently, the hospitals have been complaining about the quality of Cafeman's meals and their rising costs. In mid-2020, Cafe One's president announces that all Cafe One hospitals and support facilities will be run as profit centers. Hospitals will be free to purchase quality-certified services from outside the system. Luke Hayward, Cafeman's controller, is preparing the 2021 budget. He hears that three hospitals have decided to use outside suppliers for their meals, which will reduce the 2021 estimated demand to 820,000 meals. No change in variable cost per meal or total fixed costs is expected in 2021. Requirements 1. How did Hayward calculate the budgeted fixed cost per meal of $1.64 in 2020 ? 2. Using the same approach to calculating budgeted fixed cost per meal and pricing as in 2020 , how much would hospitals be charged for each Cafeman meal in 2021? What would the reaction of the hospital controllers be to the price? 3. Suggest an alternative cost-based price per meal that Hayward might propose and that might be more acceptable to the hospitals. What can Cafeman and Hayward do to make this price profitable in the long run