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Prepare the annual operating budget for 20X8. Problem 12 Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next vear's budget. She wants to examine three different levels of sales as follows: $700,000, $1,000,000, and $1,300,000. The following information upon which to make the calculations is provided. Food cost percentage: 45 percent Labor: Variable: 23 percent Fixed: $80,000 Other operating expenses: 8 percent Fixed charges: $100,000 Income taxes: 30 percent of pretax income dear var abc recall sto 1 off reset 0. on SCHOOL PROPE 532 Chapter 10 Required: 1. Prepare the condensed operating budget for Shives at the three levels of sales indi- cated above. 2. Comment briefly about the impact of different levels of sales on the restaurant's profits. Problem 13

Prepare the annual operating budget for 20X8. Problem 12 Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next vear's budget. She wants to examine three different levels of sales as follows: $700,000, $1,000,000, and $1,300,000. The following information upon which to make the calculations is provided. Food cost percentage: 45 percent Labor: Variable: 23 percent Fixed: $80,000 Other operating expenses: 8 percent Fixed charges: $100,000 Income taxes: 30 percent of pretax income dear var abc recall sto 1 off reset 0. on SCHOOL PROPE 532 Chapter 10 Required: 1. Prepare the condensed operating budget for Shives at the three levels of sales indi- cated above. 2. Comment briefly about the impact of different levels of sales on the restaurant's profits. Problem 13

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the annual operating budget for 20X8. Problem 12 Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next vear's budget. She wants to examine three different levels of sales as follows: $700,000, $1,000,000, and $1,300,000. The following information upon which to make the calculations is provided. Food cost percentage: 45 percent Labor: Variable: 23 percent Fixed: $80,000 Other operating expenses: 8 percent Fixed charges: $100,000 Income taxes: 30 percent of pretax income
Transcribed Image Text:Prepare the annual operating budget for 20X8. Problem 12 Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next vear's budget. She wants to examine three different levels of sales as follows: $700,000, $1,000,000, and $1,300,000. The following information upon which to make the calculations is provided. Food cost percentage: 45 percent Labor: Variable: 23 percent Fixed: $80,000 Other operating expenses: 8 percent Fixed charges: $100,000 Income taxes: 30 percent of pretax income
dear var abc recall sto 1 off reset 0. on SCHOOL PROPE 532 Chapter 10 Required: 1. Prepare the condensed operating budget for Shives at the three levels of sales indi- cated above. 2. Comment briefly about the impact of different levels of sales on the restaurant's profits. Problem 13
Transcribed Image Text:dear var abc recall sto 1 off reset 0. on SCHOOL PROPE 532 Chapter 10 Required: 1. Prepare the condensed operating budget for Shives at the three levels of sales indi- cated above. 2. Comment briefly about the impact of different levels of sales on the restaurant's profits. Problem 13
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