Question 5, P9-44 (simila... Part 1 of 6 > HW Score: 15.33%, 6.13 of 40 points O Points: 0 of 10 Save Good to Go operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, Goodman, 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, Goodman budgeted for 950,000 meals a year. Budgeted fixed costs in 2020 were $1,539,000 Each hospital was charged $5.72 per meal--S4 10 variable costs plus $1.62 allocated budgeted fixed cost (Click the icon to view additional information) Read the requirements Requirement 1. How did Callahan calculate the budgeted fixed cost per meal of $162 in 2020? Select the formula to show how Callahan calculated the budgeted fixed cost per meal of $162 in 2020 Budgeted fixed = cost per meal uu up to 1.425,000 meals a year in 2020, based on estimat from each hospital controller, Goodman budgeted for 950,000 meals a year Budgeted fixed costs in 2020 were $1,539,00 Each hospital was charged $5 72 per meal$4.10 variable costs plus $1.62 allocated budgeted fixed cost (Click the icon to view additional information) Read the requirements Req More Info Sele Judgeted fixed ost per meal Recently, the hospitals have been complaining about the quality of Goodman's meals and their rising costs. In mid-2020. Good to Go's president announces that all Good to Go hospitals and support facilities will be run as profit centers Hospitals will be free to purchase quality certified services from outside the system Sam Callahan Goodman'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 810 000 meals. No change in variable cost per meal or total fixed costs is expected in 2021 Print Done Requirements 1. How did Callahan calculate the budgeted fixed cost per meal of $1.62 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 Goodman 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 Callahan might propose and that might be more acceptable to the hospitals. What can Goodman and Callahan do to make this price profitable in the long run