Carreras Caf is a Spanish restaurant in a university town. The owner hopes that the number of
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Question:
Carreras Café is a Spanish restaurant in a university town. The owner hopes that the number of meals served in June will be 50 percent less than those served in May, because many students are leaving for the summer. In May, the restaurant served 4,500 meals at an average price of $25.00. In the summer (June through August), the average price of a meal typically increases 18 percent and the average cost of a meal increases 20 percent. Other costs do not normally change during the summer. The following cost information is available for May. |
Service costs (variable with respect to meals) | ||
Variable service costs (with respect to meals) | ||
food costs | ps | 10,800 |
Manpower of labour | 16,300 | |
Other variable costs | 5,800 | |
Fixed utility costs | 9,200 | |
Total service costs | ps | 42,100 |
Administrative and marketing costs | ||
Marketing (variable with respect to meals) | 6,600 | |
Administrative (fixed) | 4.400 | |
Total marketing and administrative costs | ps | 11,000 |
total costs | ps | 53,100 |
Required: |
Prepare a budgeted income statement for June. (Do not round intermediate calculations.) |
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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