Evaluate analysis that has been prepared by the manager

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George Street Deli's owner is disturbed by the poor profit performance of his gelato bar. He has prepared the following profit analysis:

Sales $135 000

Less Cost of food 60 000

Gross margin $ 75000

Less Operating expenses:

Wages of counter staff $36 000 Paper products (e.g. serviettes) 12 000

Utilities (allocated) 8 700

Depreciation of counter equipment and furnishings 7 500

Depreciation of building (allocated) 12 000

Deli manager's salary (allocated) 9 000

Total expenses 85 200

Loss on gelato bar $ (10 200)

Required:

Question 1. Evaluate the above analysis that has been prepared by the manager.

Question 2. Provide a correct analysis and assess whether or not the gelato bar should be continued.

Reference no: EM132601929

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