restaurant budgets 24% of sales for variable costs, 12% for fixed costs, and 5% for profit. One of the dishes on the m
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.
A restaurant budgets 24% of sales for variable costs, 12% for fixed costs, and 5% for profit. One of the dishes on the menu has a cost per portion of $3.27 and a direct labor cost of $0.97. Using the actual pricing method, what is the appropriate sales price for this dish?
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