Chapter 10, Question 8 V. K. Sing is the manager of the Knight Kap restaurant. V. K. is preparing his budget for next year and would like to estimate his beverage revenue and expense. V. K. kept careful sales and cost records from last year. and these are listed below. Last Year Beverage Revenue and Expense: Knight Kap Guests Served Selling Price Beverage Cost eer 3,50 $8.50 $1.70 ' 4.80 $16.00 $4.80 Spirits 2,50 $12.00 $1.80 V. K. has made the following assumptions about next year: . The cost he will pay for alcoholic beverages will increase by 2 percent in all of the beverage categories. - V. K. will increase the selling price of all alcoholic beverages by 5 percent. - The number of guests served will increase by 2 percent for beer, 2 percent for wine, and 3 percent for spirits. To help V. K. prepare next year's beverage revenue and expense budget, calculate the following for each of his three beverage types: 1. Forecasted total beverage revenue 2. Forecasted total beverage cost 3. Forecasted beverage cost percentage Projected Changes (Percentage Increases or Decreases) _ Guests Served Selling Price Beverage Cost 2 s 2 s s Forecasted Beverage Revenue and Expense Forecast: Knight Kap Guests Served Selling Price Beverage Cost Total Beverage Revenue $8.93 $1.73 $1362.25 $16-80 $82,252.80 $12-60 $32,445.00 _ $145560-05