52 APPLICATION EXERCISE A manager is preparing a revenue budget for next month. I The following is the manager's current month actual oper- ating results. ACTUAL OPERATING RESULTS CURRENT MONTH Revenue Source Restaurant Lounge Banquet room Total Number of Guests 3,492 515 388 4,395 Average Sale per Guest $ 20.50 12.00 28.50 $20.21 Sales $ 71,586 6,180 11,058 $88,824 Create the revenue forecast for next month based on the following assumptions: A. Restaurant guest counts will be 3,600 with an average sale per guest of $21.00. B. Lounge guests to be served are estimated at 525 with a 10 percent increase in average sale per guest. C. The banquet room will serve 425 customers and generate $12.750 in sales. NEXT MONTH BUDGET Revenue Source Restaurant Lounge Banquet room Total Number of Guests Review Your Learn Average Sale per Guest a Sales 1. What will be the manager's revenue forecast for next month? 3. What is the overall percentage increase in the revenue forecast when compared to the current month's actual operating results? 2. What will be the manager's average sale per guest forecast for next month? 4. What are some factors that would cause the manager of an operation to create a sales forecast for the next month that exceeds the operation's current month actual operating results?
52 APPLICATION EXERCISE A manager is preparing a revenue budget for next month. I The following is the manager's current month actual oper- ating results. ACTUAL OPERATING RESULTS CURRENT MONTH Revenue Source Restaurant Lounge Banquet room Total Number of Guests 3,492 515 388 4,395 Average Sale per Guest $ 20.50 12.00 28.50 $20.21 Sales $ 71,586 6,180 11,058 $88,824 Create the revenue forecast for next month based on the following assumptions: A. Restaurant guest counts will be 3,600 with an average sale per guest of $21.00. B. Lounge guests to be served are estimated at 525 with a 10 percent increase in average sale per guest. C. The banquet room will serve 425 customers and generate $12.750 in sales. NEXT MONTH BUDGET Revenue Source Restaurant Lounge Banquet room Total Number of Guests Review Your Learn Average Sale per Guest a Sales 1. What will be the manager's revenue forecast for next month? 3. What is the overall percentage increase in the revenue forecast when compared to the current month's actual operating results? 2. What will be the manager's average sale per guest forecast for next month? 4. What are some factors that would cause the manager of an operation to create a sales forecast for the next month that exceeds the operation's current month actual operating results?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:52
APPLICATION EXERCISE
A manager is preparing a revenue budget for next month.
The following is the manager's current month actual oper-
ating results.
I
ACTUAL OPERATING RESULTS CURRENT MONTH
Revenue
Source
Restaurant
Lounge
Banquet room
Total
Number
of Guests
3,492
388
4,395
Average Sale
per Guest
$ 20.50
12.00
28.50
$20.21
Create the revenue forecast for next month based on the
following assumptions:
49
Sales
$ 71,586
6,180
11,058
$88,824
A. Restaurant guest counts will be 3,600 with an average
sale per guest of $21.00.
124
B. Lounge guests to be served are estimated at 525 with
a 10 percent increase in average sale per guest.
C. The banquet room will serve 425 customers and
generate $12.750 in sales.
NEXT MONTH BUDGET
Revenue
Source
Restaurant
Lounge
Banquet room
Total
Number
of Guests
Review Your Leaming
Average Sale
per Guest
Q A
1. What will be the manager's revenue forecast for next
month?
3. What is the overall percentage increase in the
revenue forecast when compared to the current
month's actual operating results?
Sales
2. What will be the manager's average sale per guest
forecast for next month?
4. What are some factors that would cause the manager
of an operation to create a sales forecast for the next
month that exceeds the operation's current month
actual operating results?
237/2
ENG
7:31 PM
20:23-08-2
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