Short answer (calculation) question. In the Ocean View Restaurant, the actual food cost in July 2022 was $32,000, and the food sales were $128,000. The standard food cost percentage in July 2022 was 5.0% lower than the actual food cost percentage in that month. What were the potential savings in this restaurant in July 2022 in dollars and in %? Show the full calculation, not just the final answers, and round all calculations to hundredths of decimal unless they naturally round up to tenths or a whole number.

. Short answer question. Analyze the report shown in Figure 1 in a few sentences answering the following questions:

1. Look at the food cost percentage to date this week and last week. Should it be investigated? Why?
2. What trend is shown in Figure 1 favorable or unfavorable? Should there be a concern for management? Explain your answer.

Figure 1. Daily Food Cost Report to Management, Including Percentages

Date 6-Jun

	Today	Same Day Last Week	To Date This Week	To Date Last Week
Food sales	$2,986.95	$2,678.50	$13,179.25	$14,376.50
Food cost	$1,337.75	$ 950.40	$ 5,455.50	$ 4,901.35
Cost %	44.786%	35.488%	41.395%	34.093%

. Possible causes of food cost percent decreases from one month to the next

A) over-purchasing, leading to food spoilage

B) overproduction, leading to waste

C) decreasing of standard portion sizes while the selling price remains the same

D) recipe changes leading to purchase of more costly ingredients