Step 2 - Use the Million Dollar Income Statement Excel spreadsheet provided above to create an operational budget for your proposed beverage business.

Sales
Food	$800,000	80.00%
Beverage	$200,000	20.00%
Total Sales	$1,000,000	100.00%	100.00%
Cost of Sales
Food	$300,000	37.50%
Beverage	$55,000	27.50%
Total Cost of Sales	$355,000	35.50%
Gross Profit	$645,000	64.50%	64.50%
Controllable Expenses
Payroll	$280,000	28.00%
Employee Benefits	$42,500	4.25%
Direct Operating Expenses	$45,000	4.50%
Music and Entertainment	$5,000	0.50%
Advertising and Promotion	$15,000	1.50%
Utilities	$27,500	2.75%
Administrative & General	$30,000	3.00%
Repair & Maintenance	$15,000	1.50%
Total Controllable Expenses	$460,000	46.00%	46.00%
Income Before Occupation Costs	$185,000	18.50%	18.50%
Occupation Costs
Rent	$55,000	5.50%
Property Taxes	$5,500	0.55%
Other Taxes	$4,500	0.45%
Property Insurance	$15,000	1.50%
Interest	$12,500	1.25%
Depreciation	$22,500	2.25%
Total Occupancy Costs	$115,000	11.50%	11.50%
Restaurant Profit Before Taxes	$70,000	7.00%	7.00%
Desired Profit Before Taxes