345 D 3 Basil Bakal is the newly appointed food and beverage director at Telco Industries. Telco creates and markets software apps developed for use with iPods. The company has 500 employees and operates its own cafeteria and executive dining room, where it daily offers free lunches to all employees. Basil's employee cafeteria serves between 375 and 425 lunches per day. Approximately 50 more meals per day are served in the 6 executive dining room. Basil has created his own modified version of a P&L for use in his operation. Calculate 7 the percentages of meals served in the employee cafeteria and executive dining room and the costs. per meal served, and then answer the questions that follow. 8 9 10 Telco Industries Food Services Department 11 12 NUMBER OF MEALS SERVED 13 Cafeteria 14 Executive Dining Room 15 Total Served 16 17 COST OF SALES 18 Cafeteria 19 Executive Dining Room Meals Served % of Total Meals Served Last Year 104,250 12,150 116,400 Per Meal Cost $ Total Cost $ $248,750 48,450 20 Total Cost of Sales LADOD Q1 Q2 Q5 Q7 Q8 Q9 E F ates allu illas sortware app G H A B 18 Cafeteria 19 Executive Dining Room 20 Total Cost of Sales 21 LABOR 22 Management 23 Staff 24 Employee Benefits 25 401(k) Match $248,750 48,450 73,332 171,108 61,110 25,350 26 Total Labor 27 PRIME COST 28 OTHER CONTROLLABLE EXPENSES 29 Direct Operating Expenses 113,515 30 Utilities 96,000 31 General & Administrative Expenses 46,669 32 Repairs & Maintenance 21,510 33 Total Other Controllable Expenses 34 C E F G H 35 a How much more did it cost (cost of sales per meal) Basil to serve a meal in the executive dining 36 room than it did in the employee cafeteria? Why do you think that would be so? 37 01 02lasioz 08.09 D E F G H the newly appointed food and beverage director at Telco Industries. Telco creates and markets software apps developer 35 a. How much more did it cost (cost of sales per meal) Basil to serve a meal in the executive dining 36 room than it did in the employee cafeteria? Why do you think that would be so? 37 43 44 b. Basil's modified P&L combines all labor costs when calculating cost per meal served. Why do 45 you think he elected to not allocate labor costs between the two serving areas? How could he do so? 39 Answer 40 46 47 48 Answer 49 50 51 385882 + 2 2 4 4 4 4 4 85823 41 42 53 c Assume you were on the board of directors of Telco. How would you decide how much more 54 money you should allocate to Basil's area next year to account for rising food prices? Who would Q1 Q2 Q5 Q7 Q8 09 Ready B C c. Assume you were on the board of directors of Telco. How would you decide how much more money you should allocate to Basil's area next year to account for rising food prices? Who would you expect to provide you with the information you need to make an informed decision about the appropriate size of the increase? D 1 2 3 4 Answer 5 6 789 E