Given is the Actual Cost Projection from a restaurant and trace the present annual projection growth of the total cost.  

You are a franchise owner of a the famous Kuilans Foodhaus. As a part of your business plan you have to forecast your projected costs using the f assumptions.

The following are the assumptions: 

• Salaries and wages will increase 7% annually.
• Transportation and utilities expense will increase 13% per year.
• There is an increase of 16.67 % on Purchases for year 2016-2019 as well as 2021. However, in year 2020 purchases will decrease 50% from the previous year due to Covid19 Pandemic.
• Rent will increase by ₱2,000 every after 2 years.

 

Transcribed Image Text:

Particulars Cost of Goods Sold Beg. Inventory Purchases Total Goods Available for sale Ending Inventory Total Cost of Goods Sold 2016 P PO Kuilans Foodhaus (in Philippine Peso) P165,000.00 165,000.00 115,000.00 P150,000.00 2017 2018 2019 2020 2021 Particulars Cost of Goods Sold Beg. Inventory Purchases Total Goods Available for sale Ending Inventory Total Cost of Goods Sold 2016 P PO Kuilans Foodhaus (in Philippine Peso) P165,000.00 165,000.00 115,000.00 P150,000.00 2017 2018 2019 2020 2021

Answer rating: 100% (QA)

To provide the projected costs for the restaurant based on the given assumptions we need to calculate the annual growth for each cost category and the... View the full answer