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Assume that Crane accepted Cullumber's offer two years ago and that all costs have remained...

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Accounting

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Assume that Crane accepted Cullumber's offer two years ago and that all costs have remained constant. Since then, a new shopping mall has opened close to the company's focation, bringing In several fast-food and quick-service restaurants, Employee demand for cafeteria service has dropped to 2,700 meals per month, and Cullumber has laid off two of the fivecafeteria workers. To offset the lower demand for meals, Best Ever is proposing to increase the price per meal from $5 to $6 per meal. Does it make financial sense for Crane to renew Cullumber's contract for another year, or should it resume operation of the cafeteria operation and charge the proposed $6 per meal price? Calculate net revenue from operating the cafeteria and the revenue from outsourcing the cafeteria. Net revenue from operating the cafeteria Revenue from outsourcing the cafeteria The company resume the operation of the cafeteria

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