Answer Problem 6 use the chart in finding your answer listed for the problem.

Proble a. Control procedures implemented during June have reduced the actual food cost per- centage by 0.5 percent and the actual beverage cost percentage by 1.8 percent from the May levels calculated in Problem 4. If actual revenues in June were as follows, calcu- late the actual costs. Data for June Actual Actual Actual Actual Food Food Cost Food Beverage Beverage Cost Beverage Revenue Percent Cost Percent Revenue Cost $192,665 $74,700 b. What is the amount of cost savings (increased profits) realized by the control measures if, in their absence, the actual product cost percentages were the same as in May? Problem 6 Following is selected information from three units of a fast-food restaurant chain from last month. All operate in the same metropolitan area. You are the district manager analyzing these results. What are the major problem areas, if any, with each unit? Marketing (Promotion) Costs Actual Budget 3% 3% Unit 1 Unit 2 Unit 3 4% 4% Planned Revenue Net Revenue Growth Actual Budget Actual Budget $110,000 $108,000 1% 0 $90,050 $107,000 3% 2% $171,100 $160,000 (2%) 1% Food Cost Actual Budget 29.3% 29.4% 30.5% 29.4% 28.8% 29.4% 2% 4% Unit 1 Unit 2 Labor Cost Actual Budget 23.8% 24.1% 23.1% 24.1% 22.9% 24.1% Unit 3 Proble a. Control procedures implemented during June have reduced the actual food cost per- centage by 0.5 percent and the actual beverage cost percentage by 1.8 percent from the May levels calculated in Problem 4. If actual revenues in June were as follows, calcu- late the actual costs. Data for June Actual Actual Actual Actual Food Food Cost Food Beverage Beverage Cost Beverage Revenue Percent Cost Percent Revenue Cost $192,665 $74,700 b. What is the amount of cost savings (increased profits) realized by the control measures if, in their absence, the actual product cost percentages were the same as in May? Problem 6 Following is selected information from three units of a fast-food restaurant chain from last month. All operate in the same metropolitan area. You are the district manager analyzing these results. What are the major problem areas, if any, with each unit? Marketing (Promotion) Costs Actual Budget 3% 3% Unit 1 Unit 2 Unit 3 4% 4% Planned Revenue Net Revenue Growth Actual Budget Actual Budget $110,000 $108,000 1% 0 $90,050 $107,000 3% 2% $171,100 $160,000 (2%) 1% Food Cost Actual Budget 29.3% 29.4% 30.5% 29.4% 28.8% 29.4% 2% 4% Unit 1 Unit 2 Labor Cost Actual Budget 23.8% 24.1% 23.1% 24.1% 22.9% 24.1% Unit 3