Question: The mayor asks you to help establish the pricing policy
The mayor asks you to help establish the pricing policy for the city’s only Internal Service Fund, the Printing Fund. The mayor has decided that all city agencies must use the Printing Fund (which will have salaried personnel, equipment, and supplies) for their printing needs. However, he has not yet decided whether the General Fund should make a loan to the Internal Service Fund to acquire the equipment or whether the General Fund should make an outright grant for that purpose. Write a report to the mayor, describing the pricing options you perceive. In discussing the options, cover the implications resulting from a decision as to whether the Printing Fund will be financed with a loan or an outright grant.
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