Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,800 meals at an average price of $20. In the summer (June through August), the average price of a meal typically increases by 25 percent and the average food cost of a meal increases by 10 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meals) Variable service costs (with respect to meals) Food costs $10,800 16,700 6,200 9,200 $42,900 Labor Other variable costs Fixed service costs Total service costs Marketing and administrative costs Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs 5,900 4,300 $10,200 Total costs $53,100 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)
Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,800 meals at an average price of $20. In the summer (June through August), the average price of a meal typically increases by 25 percent and the average food cost of a meal increases by 10 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meals) Variable service costs (with respect to meals) Food costs $10,800 16,700 6,200 9,200 $42,900 Labor Other variable costs Fixed service costs Total service costs Marketing and administrative costs Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs 5,900 4,300 $10,200 Total costs $53,100 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent
below those served in May, because so many students leave for the summer. In May, the restaurant served 4,800 meals at an average
price of $20. In the summer (June through August), the average price of a meal typically increases by 25 percent and the average food
cost of a meal increases by 10 percent. Other costs are typically unchanged during the summer. The following cost information is
available for May.
Service costs (variable with respect to meals)
Variable service costs (with respect to meals)
Food costS
$10,800
Labor
Other variable costs
Fixed service costs
16,700
6,200
9,200
$42,900
Total service costs
Marketing and administrative costs
Marketing (variable with respect to meals)
Administrative (fixed)
Total marketing and administrative costs
5,900
4,300
$10,200
Total costs
$53,100
Required:
Prepare a budgeted income statement for June. (Do not round intermediate calculations.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7826c6a-b207-4ef1-87bc-c6c5e110cb66%2F719d74a7-edaf-49a4-b4a9-78c5595e2dc3%2F6z5a5co_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent
below those served in May, because so many students leave for the summer. In May, the restaurant served 4,800 meals at an average
price of $20. In the summer (June through August), the average price of a meal typically increases by 25 percent and the average food
cost of a meal increases by 10 percent. Other costs are typically unchanged during the summer. The following cost information is
available for May.
Service costs (variable with respect to meals)
Variable service costs (with respect to meals)
Food costS
$10,800
Labor
Other variable costs
Fixed service costs
16,700
6,200
9,200
$42,900
Total service costs
Marketing and administrative costs
Marketing (variable with respect to meals)
Administrative (fixed)
Total marketing and administrative costs
5,900
4,300
$10,200
Total costs
$53,100
Required:
Prepare a budgeted income statement for June. (Do not round intermediate calculations.)
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