Question
Our town School District is considering outsourcing their lunch program. The following costs relate to preparing 4,000 meals each month: Food cost - 4500 Cafeteria
Our town School District is considering outsourcing their lunch program. The following costs relate to preparing 4,000 meals each month:
Food cost - 4500
Cafeteria worker's wages - 7500
Variable overhead - 2000
Allocated fixed overhead - 6000
Total - 20,000
A food service provider has offered to provide ready - to - eat meals at a Cost of $ 2.75. if OURTOWN'S accepts the offer , they can eliminate one of their 3 workers
What would be the financial impact on the school district if they accept the provider's offer?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
14th Edition
978-0132960649, 132960648, 132109174, 978-0132109178
