Cervantes Industries Provides an In-House Cafeteria for Production and Administrative

question 41

Multiple Choice

Cervantes Industries provides an in-house cafeteria for production and administrative employees. This service costs $25,000 per month, plus $3 per meal served. The company has 800 production employees and 400 administrative employees. During the past month 5,500 meals were served to production employees and 2,000 to administrative.
The amount of cost allocated to the administrative department using actual meals served as the basis is:

• A) $16,675
• B) $12,667
• C) $14,325
• D) $18,500

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Definitions:

Opponent

An individual or group who holds a position counter to one's own in a debate, argument, or competition.

Appeal to Authority

A logical fallacy that occurs when someone argues that a claim is true simply because an expert or authority asserts it to be true, without further evidence.

Mechanic

A professional who applies technical knowledge to repair, maintain, and sometimes construct machinery, vehicles, or other mechanical systems.

Rain

Precipitation in the form of water droplets that falls from clouds in the sky to the earth's surface.