Please answer Problem 6

a. Control procedures implemented I the actual food cost per mg 4 May levels calculated in Problem 4. If actual revenues in June were as follows, calcu- centage by 0.5 percent and the actual beverage cost percentage by 1.8 percent from the late the actual costs. Data for June Actual Food Cost Percent Food Revenue Actual Food Cost Beverage Revenue Actual Actual Beverage Cost Beverage Cost Percent $192,665 $74,700 b. What is the amount of cost savings (increased profits) realized by the control measures if, in their absence, the actual product cost percentages were the same as in May? Problem 6 Following is selected information from three units of a fast-food restaurant chain from last month. All operate in the same metropolitan area. You are the district manager analyzing these results. What are the major problem areas, if any, with each unit? Control: Analysis, Corrective Action, and Evaluation 361 were in line with age costs were in Unit 1 Unit 2 Unit 3 4% Planned Revenue Net Revenue Growth Actual Budget Actual Budget $110,000 $108,000 1% 0 $90,050 $107,000 3% 2% $171,100 $160,000 (2%) 1% Food Cost Actual Budget 29.3% 29.4% 30.5% 29.4% 28.8% 29.4% Marketing (Promotion) Costs Actual Budget 3% 3% 4% 2% 4% Labor Cost Actual Budget 23.8% 24.1% 23.1% 24.1% 22.9% 24.1% rage costs were Unit 1 Unit 2 Unit 3 Antaly Warm Sme