P9-45 (similar to) Question Help Cate One operates a chain of 10 hospitals in the Los Angeles area its central food catering facility. Cafoman, prepares and delivers meals to the hospitals It has the capacity to deliver up to 1 380 000 meals a year in 2017 based on estimates from each hospital controller, Cafeman budgeted for 920,000 meals a year Budgeted food costs in 2017 were $1,518,000 Each hospital was charged $6.25 per meal-$460 variable costs plus $165 allocated budgeted fixed cost (Click the icon to view additional information ) 1 More Info in 2017 Budgeted fixed Is a year = cost per meal pricing as in 2017, how much would hospitals be charged for each Cateman Recently, the hospitals have been complaining about the quality of Cafeman's meals and the rising costs in mid-2017, 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 Greg Bentley. Caleman's controller, is preparing the 2018 budget. He hears that three hospitals have decided to use outside suppliers for their meals, which will reduce the 2018 estimated demand to 825 000 meals No change in variable cost per meal or total fixed costs is expected in 2018 0 Requirements Print Done heal in 2018, then calculate the cost per meal (Enter amounts to the If the hospitals have already been complaining about qu More hospitals may begin to purchase meals from outs 1. How did Bentley calculate the budgeted fixed cost per meal of $1 65 in 2017? 2. Using the same approach to calculating budgeted fixed cost per meal and pricing as in 2017 how much would hospitals be charged for each Cafeman meal in 2018 What would the reaction of the hospital controllers be to the price? 3. Suggest an alternative cost-based price per meal that Bentley might propose and that might be more acceptable to the hospitals What can Cafoman and Bentley do to make this price profitable in the long run? Choose from any list or enter any number in the inpu Part remaining Print Done