Below is the information for the initial budget (before tax) being planned by the Pretoria Restaurant for the following year

Help the manager prepare the budget for next year on the table provided.

Revenue (Food) $895,000

Revenue (Beverage) $155,000

Food Cost = 31%

Beverage Cost = 21%

Labour Cost (Payroll) = 33%

Employee benefits = 14% of labour cost (payroll)

Other operating expenses = 11%

All fixed cost = 10%

Initial Budget for Pretoria Restaurant next year

Food Revenue
Beverage Revenue
Total Revenue
Food Cost
Beverage Cost
Labour Cost (Payroll)
Employee Benefits
Other Operating Expenses
Fixed Costs
Total Costs
Net Profit

The owner does not approve of the initial budget. Working together and based on the 1^st proposal above, the owner and the manager believe they can accomplish the following:

Implement marketing plans to increase the number of guests consuming food by an additional 12,000 (Average Guest food check = $27.00)

Increase beverage revenues by 8% over initial estimates

Decrease food cost to 30%

Decrease beverage cost to 19%

Decrease payroll costs to 32% (but benefit cost will increase by 6% over the initial budget because of new payroll taxes not included in the original budget)

Decrease other operating expenses to 10%

Note: fixed costs will remain at the same dollar amount as in the original budget.

What is the revised estimate of budgeted profit before tax?

Revised budget for the Pretoria restaurant for next year

Food Revenue
Beverage Revenue
Total Revenue
Food Cost
Beverage Cost
Labour Cost (Payroll)
Employee Benefits
Other Operating Expenses
Fixed Costs
Total Costs
Net Profit