Coastal Bistro has the following information for July, when several new employees were added to the waitstaff: 

^a 10 percent of this cost was for food that was not used by the expiration date, and 12 percent was for food that was incorrectly prepared because of errors in orders taken.

^b 13 percent of this cost was for kitchen staff time spent fixing dishes to replace meals prepared incorrectly because of errors in the original orders taken.  

^c 15 percent of this cost was time taken to address customer complaints about incorrect orders.

^d 70 percent of the building was used.

Required

a. Using the traditional income statement format, prepare a value income statement.

b. What value would there be for managers at Coastal Bistro from preparing the same information in August and the following months?

Transcribed Image Text:

Sales revenue. Cost of food servedª. Employee wages and salaries. Manager salaries... Building costs (rent, utilities, etc.)d $125,000 45,000 32,000 14,000 18,000