LABORATORY #3: PREPARING AN OPERATING BUDGET

Compute for the percent sales:

The Donsyl Restaurant, Income Statement , Year Ended December 31, 2019

Sales Percent of Sales

Food 820,000 74.00%
Beverage 290,000 26.00%
Total Sales 1,110,000
Cost of Sales
Food 390,503 36.00%
Beverage 48, 221 24.00%
Total Cost of Sales 438,724
Gross Profit 788,352
Controllable Expenses 40% = 100,394
Salaries and wages 250, 985 14.00%
Employee benefits 52, 600 7.00%
Other controllable expenses 95,000 12.00%
Total controllable expenses 493,983
Income before Occupancy cost, Interest, Depration and 294,369
Depreciation and Income Taxes
Occupancy cost 56,000 5.00%
Interest 55,000 5.00%
Depreciation 65,500 6.00%

Total 156,512 14.00%

Restaurant Profit 137,857 12.20%
Fixed Cost and Variable Costs in the Grandview Bistro

Fixed Costs
Occupancy
Other controllable costs
Fixed salaries and wages (60% of Salaries and Wages)
Employee benefits (25% of Fixed Salaries and Wages)
Interest
Depreciation

Variable Cost
Cost of food 40% of food sales
Cost of Beverages 20% of beverage sales
Salaries and wages 10.2% of food sales
Employee benefits 18.8% of