Operational Budget Activity

You are Given Following Financial statement and Information. Prepare the operational Budget for the
year 2022

Nature Park Food Restaurant, Income Statement, Year Ended December 31, 2021

% Of Sales
Sales    

Food 500,000.00 62.50

Beverage 300,000.00 37.50

800,000.0
Total Sales 0 100.00
     
Cost of Sales    

Food 125,000.00 25.00

Beverage 80,000.00 26.67

205,000.0
Total Cost of Sales 0 25.63
     

595,000.0
Gross Profit 0 74.38
     
Controllable Expenses    

Salaries and wages 100,000.00 12.50

Employee Benefits 25,000.00 3.13

Other controllable expenses 50,000.00 6.25

175,000.0
Total Controllable expenses 0 21.88
     

Income before occupancy cost, Interests, Depreciation, and 420,000.0

income tax 0 52.50
     

Occupancy Cost 25,000.00 3.13

 Interests 15,000.00 1.88

Depreciation 10,000.00 1.25

Total 50,000.00 6.25

     

370,000.0
Restaurant Profit 0 46.25

Fixed Costs and Variable Costs in the Nature Park Food

Fixed Costs

Occupancy costs 25000.00

Other controllable costs 50000.00

Fixed Salaries and wages 70000.00 (70% of Salaries and Wages)

Employee benefits 21000.00 (30% of fixed salaries and wages)

Interests 15000.00

Depreciation 10000.00

Variable Costs

Cost of food 25% of food sales

Cost of Beverages 26.67 % of beverage sales

Salaries and Wages 9% of food sales

Employee Benefits 30 of variable salaries and wages

Anticipated changes on year 2022

1. Both food and beverage sales are expected to increase by 6%

2. Fixed salaries and wages will increase by 7%
3. Variable salaries and wages will continue to be the same percent of sales
4. The cost of employee benefits will increase, but will continue to be the same percentage of
salaries and wages
5. Other controllable costs will increase by 6500
6. Occupancy cost will increase by 2000
7. Food and beverage cost percentages will remain the same
8. Interests and depreciation will remain the same