Case Study - Cost Control

I. ANALYSIS. Assess the current status of the company by referring to the given problem and
the financial statement provided. (40pts)

Make sure to assess the following parts of the Income Statement:

1. Revenue/Sales
2. Cost of Sales
3. Gross Profit
4. Operating Expenses
5. Net Profit

 Provide positive and negative observations in connection with the financial status of the
company and provide some strategies to improve the current financial status. Write your answers
provided on the last page.

II. MENU PACKAGE. Create a Menu Package based on the Income statement below. (60pts)

1. Create your own given (you can pattern it in your previous quizzes and exams).
2. Make sure the given you will be provided will accurate to the answer on the given
revenue, cost, and operating expenses found in the Income Statement.
3. Recipe Costing, Baker’s Percentage, and Menu Costing must be balance and accurate to
the income statement.
4. Show your formula and solution
5. You have the option if you will do the 2-year package (2020 & 2021).

Case #1
 Tamaraw’s Cafe, a coffee shop located at the business area of Sampaloc, Manila was
established on January 2010. It has a total of 100 seating capacity, and a total cover of 46,908 for
2020 and 54,344 for 2021.

Tamaraw’s Cafe
Income Statement
2019 and 2020
Revenue 2020 2021
  Food Sales 2,490,760 3,780,000
Beverage Sales 1,524,340 2,140,000
  Merchandise Sales 990,568 1,021,960
Total Sales 5,005,668 6,941,960
Cost of Sales      
  Food Cost 1,131,194 1,452,110
  Beverage Cost 644,270 861,681
  Merchandise Cost 350,122 420,039
Total Cost of Sales 2,125,586 2,733,830
Gross Profit      
  Food 1,359,566 2,327,890
  Beverage 880,070 1,278,319
  Merchandise 640,446 601,921
Total Gross Profit 2,880,082 4,208,130
Operating Expenses    
  Accounting 32,000 48,000
  Depreciation 100,000 180,000
  Donation 20,000 50,000
  Utilities 133,600 183,800
  Insurance 80,000 80,000
  Advertising 67,880 97,680
  Rentals 480,000 540,000
  Salaries 1,423,160 1,843,500
  Maintenance 141,880 141,880
  Telephone 51,400 56,800
  Transportation 105,920 150,670
Total Operating Expenses 2,635,840 3,372,330
       
Operating Income   244,242 835,800
Interest   94,879 94,880
Income before
Income Taxes   149,363 740,920
Income Taxes   17,924 88,910
       
Net Profit/Loss 131,439 652,010
Observation / Assessment Strategies
Revenue/Sales

Cost of Sales

Gross Profit

Operating Expenses

Net Profit