Boulevard Sandwich Case

$1.$ Prepare a schedule using an excel sheet which lists and compares the flexible budgets a through d with the planned operating Income statement for $2018$ and the actual operating Income statement for $2018$ given in exhibit $1.$ Make sure to show your calculations clearly $,$ the formulas $($use the format of the table attached$)$

a$.$ Prepare a flexible budget based on the actual number of customers served.

b$.$ Prepare a flexible budget based on the actual number of customers served and the actual sales mix.

c$.$ Prepare a flexible budget based on the actual number of customers served, the actual sales mix, and average gross checks at lunch and at dinner.

d$.$ Prepare a flexible budget based on the actual number of customers served, the actual sales mix, average gross checks at lunch and at dinner, and Discount coupon usage.

$2.$ Use the excel sheet prepared for part $1$ above to determine the variance of profit between: $($use the format of the table attached$)$

a$.$ Planned Income statement and flexible budget $($a$)$

b$.$ Flexible budget $($a$)$ and Flexible budget $($b$)$

c$.$ Flexible budget $($b$)$ and Flexible budget $($c$)$

d$.$ Flexible budget $($c$)$ and Flexible budget $($d$)$

e$.$ Flexible budget $($d$)$ and Actual

$3.$ What do the $2018$ results suggest about the performance of Philips? Make sure to include in your discussion, the favorable$/$unfavorable variances that are within Philips control versus those that are beyond his control.

Planned$-20182$a$.$ Variance with Planned

$(1.$a$.-$Planned$)1$a$.$ FB$-$Actual #Customers $2$ b$.$

Variance a & b

$(1$b$-1$a$)1$b$.$ FB$-$Actual #Customers & Actual Sales mix $2$c$.$

Variance b & c

$(1$c$-1$b$)1$c$.$ FB$-$ Actual #Customers & Actual Sales mix, & average Gross Checks at Lunch and at Dinner $2$ d$.$

Variance c & d

$(1$d$-1$c$)1$d$.$ FB$-$ Actual #Customers & Actual Sales mix, & average Gross Checks at Lunch and at Dinner, & Discount Coupon Usage $2$e$.$

Variance

D & actual

$($Actual$-1$d$)$ Actual$-2018$

$.$

$.$

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$.$

Profits