Culinary Math

Assignment - Budget Activity Worksheet Complete worksheet below using the management goals described in the chart to generate next year's budget (Ist Draft). Note that by completing the other management goals as described, the profit target will not be met. Next, use your judgment to adjust Ist Draft so that the profit goal is met and the changes remain realistic compared to both management goals and the current year actual data. There will be only 1 solution for Ist draft, but many possible solutions for the final budget. Complete all cells outlined in yellow including the current year income statement as part of the exercise. Income Statement and Budget Current Year Management Goals for Budget Next Year's Budget (Ist Draft) Next Year's Budget (Final Budget % s Sales Food Beverage Total Sales 1.400.000 330,000 80.9% 78& of Sales 19.1% 22% of Sales Grow 5% over 100.0% last year 1,730,000 $30,000 77.0001 37.9%35% 23.3% 23% 475,000 Cost of Sales Food Cost Beverage Cost Total Cost of Goods Sold Gross Profit Labor Salaries and Wages Employee Benefits Total Labor Cost Prime Cost Controllable Expenses Direct Operating Expenses 89,000 27.5% 28% 5.196 20% of Salaries and Wages 82.500 4.8% 4.8% Music and Entertainment 18.000 60.000 Marketing Utilities Same Dollar 1.09 Amount 3.5%$65.000 3.196 Increase by 7 over last year 2.2940000 53.000 General and Administrative 38,000 Repairs and Maintenance 23.500 1.4% 30000 Total Controllable Expenses Income before Fixed Costs Fixed Costs Occupacy Costs 180,000 10.4% 2% increase over last year Inerests 28.000 1.6% Same S Amount Depreciation 50,000 2.9% Same S Amount Total Fixed Costs Profit Before Taxes 4.5%