6. Using the income statement and the management goals given below, generate a first-draft budget for the upcoming year. (Note: profit is not specified as a goal in this question.) Management Goals: a. Total sales growth of 1.7% b. Sales mix of 71% food and 29% beverage c. Food cost of 32.0% and beverage cost of 20.0% d. Maintain all controllable expenses at their current percent of sales e. Maintain all fixed costs at their current dollar amount \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Income Statemeat and Budget } \\ \hline & \multicolumn{2}{|c|}{ Current Year } & \multirow{2}{*}{\begin{tabular}{l} Management Goals \\ for Budget \end{tabular}} & \multicolumn{2}{|c|}{ Next Year's Budget } \\ \hline Sales & & & & s & % \\ \hline Food & $1,013,600 & 72.4% & & 1,010,898 & 71% \\ \hline Beverage & 536,400 & 27.6% & & 412,902 & 29 \\ \hline Total Sales & $1,400,000 & 100.0% & & 1,423,800 & 100 \\ \hline \multicolumn{6}{|l|}{ Cost of Sales } \\ \hline Food Cost & 5331,447 & 32.7% & & 323,487.36 & 32 \\ \hline Beverage Cost & 565,394 & 2.1% & & 82,580.40 & 20 \\ \hline \begin{tabular}{l} Total Cest of Geods \\ Sold \end{tabular} & 5416,241 & 29.8% & & 406,067.76 & 28.52 \\ \hline Gross Profit & s963,159 & 70.2% & & 1,017,732.24 & 71.48 \\ \hline \multicolumn{6}{|l|}{ Labor } \\ \hline Salaries and Wages & 5403,200 & 28.8% & & 403,200 & 28.32 \\ \hline Employee Benefits & 596,600 & 6.9% & & 96,600 & 6.78 \\ \hline Total L.abor Cost & 5499,900 & 35.7% & & 499,800 & 35.10 \\ \hline Prime Cost & 5916,641 & 55.5% & & 905,867.76 & 63.62 \\ \hline \multicolumn{6}{|l|}{ Controllable Expenses } \\ \hline \begin{tabular}{l} Direct Operating \\ Expenses \end{tabular} & 570,000 & 5.0% & & 71,190 & 5 \\ \hline \begin{tabular}{l} Music and \\ Entertainment \end{tabular} & $11,200 & p.8\% & & 11,390 & 8 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline Marketing & $32,200 & 2.3% & & 32,747.40 & 2.30 \\ \hline Utilities & $63,000 & 4.5% & & 64,071 & 4.5 \\ \hline General and & $37,800 & 2.7% & & & \\ \hline Repairs and & $7,000 & 0.5% & & & \\ \hline Maintenance & & & & & \\ \hline Expenses Controllable & $221,200 & 15.8% & & & \\ \hline Income before Fixed & $262,159 & 18.7% & & & \\ \hline Costs & & & & & \\ \hline Fixed Costs & & & & & \\ \hline Occupancy Costs & $140,000 & 10.0% & & & \\ \hline Interest & $65,000 & 4.6% & & & \\ \hline Depreciation & $21,000 & 1.5% & & & \\ \hline Total Fixed Costs & $226,000 & 16.1% & & & \\ (Occupancy, Interest, & & & & & \\ \hline \end{tabular} 7. Referring to question 6 , management would like to hit a profit before taxes of 4.5% of sales. Has it hit that profit target with the budget guidelines listed in question 6 ? If not, what changes would you recommend to the budget to realize a 4.5% profit? (There are many possibilities.)