1. Business
  2. Accounting
  3. 13 in the current year the manager of the downtowner...

Question: 13 in the current year the manager of the downtowner...

Question details

13. In the current year, the manager of the Downtowner Restaurant has been following the operating budget reduced here:

For the coming year, the following changes are expected:

Given these anticipated changes, prepare ab operating budget for the Downtowner Restaurant for the coming year.

13. In the current year, the manager of the Downtowner Restaurant has been following the operating budget reproduced here For the coming year, the following changes are expected a. Food sales will increase by 10 percent b. Beverage sales will increase by 6 percent C. Food cost percent and beverage cost percent will remain the same d. Fixed salaries and wages $69,300 for this year-will increase by $8,000. Variable salaries and wages will be 16 percent of expected food sales. e. Employee benefits will remain the same percentage of salaries and wages E Controllable expenses will increase by $12,000.Sales Food Beverage Total sales $630,000 140,000 5770,000 Cost of Sales Food 252,000 35,000 Beverages Total costs 287,000 牙8305 Gross Profit Controllable Expenses Salaries and wages Employee benefits Other controllable $173,250 45,045 82,000 expenses Total Controllable Expenses 300,295 182,705 Income before Occupancy and Income Taxes Income before Interest, Costs, Interest, Depreciation, Occupancy Costs 64,000 Depreciation, and Income Taxes Interest Depreciation Total Restaurant Profit 10,000 28,500 38,500 80,205 g Occupancy costs will increase by $5,000. h. Interest and depreciation will remain the same Given these anticipated changes, prepare an operating budget for the Downtowner Restaurant for the coming year

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution