1. Using the previous Income Statement as a guide, complete the income statement on the following page assuming that total sales revenue will increase.

• The percentage increase will be based on the first 3 numbers of your student number. For example if your student number is 199 201 200, the percentage increase will be 19.9%. (STUDENT NUMBER 124)

So based on that increase your new sales revenue would increase by $682,000 x 0.199 = $135,718. This means in this example Sales would be $682,000 + $135,718 = $817,718. This would be set at 100% in the new income statement.

• Food sales and Beverage sales would increase in terms of dollars, but remain at the same percentage of total sales
• Cost of food and cost of beverages sold percentages will remain the same. The percentages will remain the same, but the dollar amounts will increase due to the fact that sales would have increased
• Fixed costs will remain the same
• Payroll or Labour costs are considered variable, meaning they are based on total sales. Apply the labour cost percentage you calculated in question 1, to the total Sales in question 2 to calculate Total payroll costs

• Sales	$	$	%
  Food Sales
  Beverage Sales
  Total Sales
  Cost of Sales
  Cost of Food Sold
  Cost of Beverages Sold
  Total Cost of Sales
  Gross Margin
  Operating Expenses
  Labour
  Rent
  Other
  Total Expenses
  Operating Income

• Calculate the breakeven level of sales