ACTUAL OPERATING RESULTS CURRENT MONTH Revenue Source Number of Guests Restaurant Lounge Banquet room Total 3492 515 388 4395 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assignment Four
A manager is preparing a revenue budget for next month. The following is the manager's current
month actual operating results.
ACTUAL OPERATING RESULTS CURRENT MONTH
Revenue Source
Number of Guests
Restaurant
Lounge
Banquet room
Total
NEXT MONTH BUDGET
Revenue Source
3492
515
388
4395
Restaurant
Lounge
Banquet room
Total
Average Sale per
Guest
Number of Guests
$20.50
$12.00
$28.50
$20.21
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.
Sales
Average Sale per
Guest
$71,586
$6,180
$11,058
$88,824
Sales
1. What will be the manager's revenue forecast for next month?
2. What will be the manager's average sale per guest 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?
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?
Transcribed Image Text:Assignment Four A manager is preparing a revenue budget for next month. The following is the manager's current month actual operating results. ACTUAL OPERATING RESULTS CURRENT MONTH Revenue Source Number of Guests Restaurant Lounge Banquet room Total NEXT MONTH BUDGET Revenue Source 3492 515 388 4395 Restaurant Lounge Banquet room Total Average Sale per Guest Number of Guests $20.50 $12.00 $28.50 $20.21 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. Sales Average Sale per Guest $71,586 $6,180 $11,058 $88,824 Sales 1. What will be the manager's revenue forecast for next month? 2. What will be the manager's average sale per guest 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? 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?
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