Meals To Go operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, Cafeman, prepares and delivers meals to the hospitals. It has the capacity to deliver up to 1,425,000 meals a year. In 2020, based on estimates from each hospital controller, Cafeman budgeted for 1,012,500 meals a year. Budgeted fixed costs in 2020 were $1,539,000. Each hospital was charged $6.02 per meal-$4.50 variable costs plus $1.52 allocated budgeted fixed cost. i (Click the icon to view additional information.) Read the requirements. i More Info X Requirement 1. How did Sagar calculate the budgeted fixed cost per meal of $1.52 in 2020? Select the formula to show how Sagar calculated the budgeted fixed cost per meal of $1.52 in 2020. Recently, the hospitals have been complaining about the quality of Cafeman's Budgeted fixed meals and their rising costs. In mid-2020, Meals To Go's president announces that all Meals To Go hospitals and support facilities will be run as profit centers. cost per meal Hospitals will be free to purchase quality-certified services from outside the system. Greg Sagar, 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 855,000 meals. No change in variable i Requirements cost per meal or total fixed costs is expected in 2021. Print Done 1. How did Sagar calculate the budgeted fixed cost per meal of $1.52 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 Sagar might propose and that might be more acceptable to the hospitals. What can Cafeman and Sagar do to make this price profitable in the long run? Print Done ? Choose from any drop-down list and then click Check Answer. Check Answer 5 parts Clear All remaining MacBook Air