Question

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 executive dining room. Basil has created his own modified version of a P&L for use in his operation. Calculate 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.

Telco Industries Food Services Department
	Meals Served Last Year	% of Total Meals Served
NUMBER OF MEALS SERVED
Cafeteria	104,250	89.6%
Executive Dining Room	12,150	10.4%
Total Served	116,400	100.0%
	Total Cost $	Per Meal Cost $
COST OF SALES
Cafeteria	$248,750	$2.39
Executive Dining Room	48,450	$3.99
Total Cost of Sales	297,200	$6.37
LABOR
Management	73,332
Staff	171,108
Employee Benefits	61,110
401(k) Match	25,350
Total Labor
PRIME COST
OTHER CONTROLLABLE EXPENSES
Direct Operating Expenses	113,515
Utilities	96,000
General & Administrative Expenses	46,669
Repairs & Maintenance	21,510
Total Other Controllable Expenses

Answer 1