Based on the picture I have attached, what recommendations would you make to upper management that would reduce expenses and increase revenues. For example:

• Talk about product mix. Where should they focus their marketing dollars next year in order to increase profit margin?
• How will your recommendation affect food cost?
• What other recommendations would you make based on this year's performance?
• Create next year's budget based on what it would look like if upper management accepted your recommendations
• Consider doing some outside research of current fast food chains, compare how they perform versus this operation to support your recommendations

For year ending December 31, 2010 Actual Results Budgeted Results Variance Performance Report Store #: 100 Percent Totals Percent Totals of Sales of Sales Revenue: Burgers 40 1,000,000 43.6 1,100,000 (100,000) Fries 24 600,000 21.8 550,000 50,000 Drinks 36 900,000 34.6 875,000 25,000 Total Sales 100 2,500,000 | 100 2,525,000 25,000 Less: Variable Expenses Food Cost: Burgers 23.3 232,750 22 242,500 (9,750) Fries 25.2 151,000 28.2 155,000 (4,000) Drinks 19.4 87,500 10.7 94,000 (6,500) Other Variable Costs: 7 175,000 | 7.9 200,000 (25,000) Total Variable Expenses 25.9 646,250| 27.4 691,500 (45,250) Contribution Margin 75 1,853,750 73 1,833,500 20,250 Less: Fixed Costs 44 1,100,000 43.6 1,100,000 Profit Margin 30.2 753,750 | 29 733,500 20,520