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 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 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 $11,000 16,500 6,400 9,300 $43,200 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 6,000 5,000 $11,000 $54,200 Total costs 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 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 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 $11,000 16,500 6,400 9,300 $43,200 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 6,000 5,000 $11,000 $54,200 Total costs Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)

Essentials of Business Analytics (MindTap Course List)

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ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

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Question

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 4,400 meals at an average price of $15. In the summer (June
through August), the average price of a meal typically increases by 30 percent and the average food cost
of a meal increases by 15 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
$11,000
16,500
6,400
9,300
$43,200
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
6,000
5,000
$11,000
Total costs
$54,200
Required:
Prepare a budgeted income statement for June. (Do not round intermediate calculations.)

Required:
Prepare a budgeted income statement for June. (Do not round intermediate calculations.)
Carreras Café
Budgeted Income Statement
For the month of June
Service costs:
Total service costs
$
$
Marketing and Administrative
Total marketing and administrative costs
$
$

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