Sit 'N Eat family restaurant serves three menus during the day, 7 days a week

The restaurant has 25 tables that each seat 4 people

The restaurant experiences a seat turnover of 2 for each menu offering

The breakfast menu has three choices with selling prices of $13, $14.50 and $15

Cost of materials for breakfast is 30%, 30% and 33% for each of the above items

The lunch menu has four choices with selling prices of $15, $16, $16.50 and $18

Cost of materials for lunch is 31%, 30%, 36% and 40% for each of the above items

The dinner menu has three choices with selling prices of $25, $28 and $35

Cost of materials for dinner is 25%, 30% and 35% for each of the above items

Average daily labour cost $6,000

Average daily fixed overhead is $1,000

Average variable overhead is $650

Required:

Using the format of the Income Statement displayed in Figure 2.1 on page 53, What is

a three month and quarterly budget for Sit 'N Eat for the first quarter of the year.

If actual results show the following:

Sales: Breakfast $260,500 Lunch $300,000 Dinner $550,500

Cost of Sales: Breakfast $85,900 Lunch $105,000, Dinner $129,000

What conclusions can be drawn from these results with regard to what was sold?

Answer rating: 100% (QA)

Answer To create the income statement for Sit N Eat for the first quarter of the year well calculate ... View the full answer