Yum Yum operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, Mealman, prepares and delivers meals to the hospitals. It has the capacity to deliver up to 1,450,000 meals a year. In 2017, based on estimates from each hospital controller, Mealman budgeted for 1,040,000 meals a year. Budgeted fixed costs in 2017 were $1,508,000. Each hospital was charged $5.65 per meal_$4.20 variable costs plus $1.45 allocated budgeted fixed cost. (Click the icon to view additional information.) Read the requirements. Recently, the hospitals have been complaining about the quality of Mealman's meals and their rising costs. In mid-2017, Yum Yum's president announces that all Yum Yum hospitals and support facilities will be run as profit centers. Hospitals will be free to purchase quality-certified services from outside the system. Harold Callahan, Mealman's controller, is preparing the 2018 budget. He hears that three hospitals have decided to use outside h GAA e Yum Yum hospitals and support facilities will be run as profit centers. Hospitals will be free to purchase quality-certified services from outside the system. Harold Callahan, Mealman'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 754,000 meals. No change in variable cost per meal or total fixed costs is expected in 2018. 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 Mealman 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 Callahan might propose and that might be more acceptable to the hospitals. What can Mealman and T B PS cost per meal and pricing as in 2017, how much would hospitals be charged for each Mealman 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 Callahan might propose and that might be more acceptable to the hospitals. What can Mealman and Callahan do to make this price profitable in the long run? RI 1. How did Callahan calculate the budgeted fixed cost per meal of $1.45 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 Mealman meal in 2018? What would the reaction of the hospital controllers be to the price? 2. Chaandt an alternative.coot hacod orico por moal that W Requirement 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 Mealman meal in 2018? What would the reaction of the hospital controllers be to the price? Select the formula that is used to show how much the hospitals would be charged for each meal in 2018, then calculate the cost per meal. (Enter amounts to the nearest cent.) Budgeted fixed cost per meal 1.45 Budgeted variable cost per meal Total budgeted cost per meal 5.65 + 4.2