Prepare an annual budget using an income statement format. Labor is treated as a variable cost for this business. Information: Sales last year $200,000. Menu prices increasing 5% and sales volume stays the same Cost of sales 33% Payroll and related expenses 30% Cost of supplies 5% Rent $2,000 per month All other expenses 10% Answer: Sales Cost of Sales Gross Profit Payroll & related exp Supplies expense Rent expense Other Expenses Income