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Unformatted text preview: makes my meal or not. The claim my meal costs $15 is baloney! Management sees the situation differently. In the case of Joshs dinner, it is agreed that the ingredients cost around $6. But there are labor costs to prepare the meal, and the cost of the oven is $18,000. Also utility costs should be taken into account, not to mention the cost of the bus boys salary to clean up after these meals. We sell the prime rib meal for $25 to our customers, so $15 is a bargain for our employees. Required: List examples of the costs to prepare meals at the Riverside Hotel that are fixed, variable and sunk. Provide an example of an opportunity cost the Riverside Hotel might have. What is a possible solution to this conflict?...
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- Spring '10