Hillary Corporation has its own cafeteria with the following annual costs:Food$200,000 Labour150.000 Overhead220,000 Total$575.000 The overhead is
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Hillary Corporation has its own cafeteria with the following annual costs:Food$200,000 Labour150.000 Overhead220,000 Total$575.000 The overhead is 40% fixed. Of the fixed overhead, $50,000 is the salary of the cafeteria supervisor.The remainder of the fixed overhead has been allocated from total company overhead. Assuming the cafeteria supervisor will remain and that Hillary will continue to pay her salary, what is the maximum cost Hillary is willing to pay an outside firm to replace the cafeteria services?
Related Book For
Operations and Supply Chain Management
ISBN: 978-1118738542
8th edition
Authors: Roberta S. Russell, Bernard W. Taylor
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