You have the following information concerning a fast-food restaurant for three consecutive months. April Sales revenue...

 

Transcribed Image Text:

You have the following information concerning a fast-food restaurant for three consecutive months. April Sales revenue Cost of sales $41,500 Wages expense Other expenses Departmental income Guests served $120,500 34,200 22,000 $97,700 $ 22,800 20,200 May $51,500 42,100 25,100 $141,300 $118,700 $ 22,600 24,400 June $62,800 51,900 29,100 $165,900 $143,800 $ 22,100 29,900 Convert the consolidated income statements to common size. Use the number of customers to prepare additional analyses. Comment on what is happening in this operation using the information you have calculated. You have the following information concerning a fast-food restaurant for three consecutive months. April Sales revenue Cost of sales $41,500 Wages expense Other expenses Departmental income Guests served $120,500 34,200 22,000 $97,700 $ 22,800 20,200 May $51,500 42,100 25,100 $141,300 $118,700 $ 22,600 24,400 June $62,800 51,900 29,100 $165,900 $143,800 $ 22,100 29,900 Convert the consolidated income statements to common size. Use the number of customers to prepare additional analyses. Comment on what is happening in this operation using the information you have calculated.

Answer rating: 100% (QA)

To convert the consolidated income statements to common size we need to express each expense category and income as a percentage of the sales revenue ... View the full answer