Reference no: EM131507658

Question: A 120-seat family restaurant is open Mondays to Saturdays only for lunch and dinner. On Sundays and holidays, totaling 60 days annually, the restaurant is open for dinner only. During the coming year, the owner anticipates the following:

In addition, the restaurant has a small private party room and estimates its food sales revenue to be $144,000 next year. Beverage sales revenue is 12% of lunch food sales revenue and 25% of weekday dinner food sales revenue (no beverages are served Sundays and holidays). In addition, beverage sales revenue for private party room averages 40% of its total food sales revenue. Food cost averages 37% of total food revenue, and beverage cost averages 33% of total beverage revenue. Fixed salaries are estimated to be $284,000. The variable wage cost averages 15% of total restaurant revenue. Employee benefits average 12% of total fixed and variable wage cost. Other operating costs are expressed as percentages of total sales revenue from all food and beverage sales:

Prepare the restaurant's budgeted income statement for next year using the preceding information. For purposes of this problem, ignore income tax. Also, round figures to the nearest whole dollar where necessary.