none of the other submissions are accurate.

Chapter 9, Question 8 Basil Bakal is the newly appointed food and beverage director at Telco Industries. Telco creates and markets software apps developed for use with iPods. The company has 500 employees and operates its own cafeteria and executive dining room, where it daily offers free lunches to all employees. Basil's employee cafeteria serves between 375 and 425 lunches per day. Approximately 50 more meals per day are served in the executive dining room. Basil has created his own modified version of a P&L for use in his operation. Calculate the percentages of meals served in the employee cafeteria and executive dining room and the costs per meal served, and then answer the questions that follow. 3 Telco Industries Food Services Department Meals Served % of Total Meals Last Year Served NUMBER OF MEALS SERVED Cafeteria 104,250 Executive Dining Room 12,150 Total Served 116,400 Total Cost $ Per Meal Cost $ - COST OF SALES Cafeteria $248,750 Executive Dining Room 48,450 Total Cost of Sales 297,200 LABOR Management 73,332 B Staff 171,108 Employee Benefits 61,110 5 401(k) Match 25,350 D 25,350 46,669 5 401(k) Match 5 Total Labor 7 PRIME COST 8 OTHER CONTROLLABLE EXPENSES 9 Direct Operating Expenses 0 Utilities 1 General & Administrative Expenses -2 Repairs & Maintenance 3 Total Other Controllable Expenses 113,515 96,000 46,669 21,510 4 55 a. How much more did it cost (cost of sales per meal) Basil to serve a meal in the executive 56 dining room than it did in the employee cafeteria? Why do you think that would be so? 37 Answer: 38 39 40 b. Basil's modified P&L combines all labor costs when calculating cost per meal served. Why 21 do you think he elected to not allocate labor costs between the two serving areas? How could 12 he do so? 13 Answer. 14 15 46 C. Assume you were on the board of directors of Telco. How would decide how much more 47 money you should allocate to Basil's area next year to account for rising food prices? Who 48 would you expect to provide you with the information you need to make an informed decision 49 about the appropriate size of the increase? 50