price per meal = actual revenue/actual meals sold) Problem 12 (12 points) Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next year'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 Prepare the condensed operating budget for Shives at the three levels of sales indicated above. HOMEWORK HINT: Variable cost are a percentage of sales. Income taxes are a percentage of net income (before taxes). Next - Previous F9 F10 F7 F8 F5 F6 F1 F2 F3 F4
price per meal = actual revenue/actual meals sold) Problem 12 (12 points) Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next year'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 Prepare the condensed operating budget for Shives at the three levels of sales indicated above. HOMEWORK HINT: Variable cost are a percentage of sales. Income taxes are a percentage of net income (before taxes). Next - Previous F9 F10 F7 F8 F5 F6 F1 F2 F3 F4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Help
Transcribed Image Text:price per meal = actual revenue/actual meals sold)
Problem 12 (12 points)
Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next year'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
Prepare the condensed operating budget for Shives at the three levels of sales indicated above.
HOMEWORK HINT: Variable cost are a percentage of sales. Income taxes are a percentage of net
income (before taxes).
Next
- Previous
F9
F10
F7
F8
F5
F6
F1
F2
F3
F4
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education