Burger store is located near many large office buildings, so at lunch it is extremely busy. burger store management previously permitted lunchtime employees a half-hour off-premises lunch break. however, employees could not easily return in a timely manner. thus, a new policy was instituted to allow employees a 20-minute break for free lunch (only on the burger store premises). the company's accountant believes that the cost of these meals must be allocated to employees as additional compensation because the meals do not qualify as a nontaxable fringe benefit for employee discounts.
1. should the cost of these meals be taxable or tax-free to employees?

Mountain mouse makes freeze-dried meals for hikers. one of mountain mouse's biggest customers is a sporting goods superstore. every 66 days, mountain mouse checks the inventory level at the superstore and places an order to restock the meals. these meals are delivered by ups in 55 days. average demand during the reorder period and order lead time is 8585 meals, and the standard deviation of demand during this same time period is about 1919 meals. calculate the restocking level for mountain mouse. assume that the superstore wants a 95\% service level. what happens to the restocking level if the superstore wants a higher level of service-say, 99]%? the restocking level for the 95% service level is 117 mealssuppose there are 25 meals in the superstore when mountain mouse checks inventory levels. how many meals should be ordered, assuming a 95% service level?