Jennifer Caratini has recently accepted the job as the Foodservice Director for Techmar Industries, a corporation with 1000 employees. As Foodservice Director, Jennifer’s role is to operate a company cafeteria, serving 800 to 900 meals per day, as well as an Executive Dining room, serving 100 to 200 meals per day. All of the meals are provided “free of charge” to the employees of Techmar. One of Jennifer’s first jobs is to prepare a budget for next year’s operations.
Since employees do not pay for their food directly, what will Jennifer use as the “revenue” portion of her budget? How do you think this number should be determined?