Management Accounting Assignment Fall 2020
Problem 1
Chef Gary has been a pioneer of farm-to-table cooking. In fact, he used to be a farmer
and decided that he wanted to use everything grown and raised on his farm to make the
freshest fine cuisine possible. Sure, some of the spices and ingredients have to be
sourced from elsewhere, but 90% of what is in Chef Gary’s food is direct from his farm.
He spent $2 million in savings and converted some of his many acres of farmland into a
restaurant. He is the head chef and has a staff of about 10 people working for him. He
pays his workers cash, but he does not pay himself a salary; the profit of the restaurant
is what he claims at the end of the year as his income.
five.
big ones.
Problem 2
Say that you are a manager with the Transportation Security Administration (TSA). The table shows fictional estimates of the marginal benefit and marginal cost of additional TSA security lines at Mahlon Sweet Field, the airport in Eugene, Oregon.
Management Accounting Assignment Fall 2020