Question 3 A. An operation projected it would serve 10,000 guests at an average sale per guest of $11 in a specific budget period. In that period, the operation actually served 11,000 guests and achieved revenue of $100,000. What was the operation's variance in revenue for the period? B. A manager originally budgeted $85,500 in sales with a 38% food cost target. The revenue budgeted is revised upward to $100,000. What would be the amount projected for food cost in the new budget?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps