Problems Problem 1 Financial information for a restaurant's beverage operation is as follows: Beverage Cost Percent Beverage Revenue Month Actual January February March $19,500 $21,005 $22,100 Standard 22% 22% 22% 26% 23.2% 24.7% By what amount could profit levels have been increased if actual beverage cost percentages were on target with estimated standard costs? Problem2 Food revenues are $850,000; beverage revenues are $110,000. There is a 1-percent variance between standard and actual food costs and a 4-percent variance between standard and actual beverage costs. Which operation (food or beverage) likely has the most significant control problem? Why