Reference no: EM133786464

Homework: HOSP

Part I

The manager of a restaurant has just received an income statement report comparing the establishment's financial performance this year to last year's performance. After reviewing the Excel workbook report below, answer the questions that follow to help the manager better understand the operation and its financial performance:

Task

A. What was the difference between the operation's food sales this year from the previous year?

• Does this mark an improvement or a decline?

B. What was the difference between the operation's beverage sales this year from the previous year?

• Does this mark an improvement or a decline?

C. What was the difference between the operation's total sales this year from the previous year?

• Does this mark an improvement or a decline?

D. Did the operation spend more or less for food when comparing this year's expense to last year's expense?

• By how much?

E. Did the operation spend more or less for beverages when comparing this year's expense to last year's expense?

• By how much?

F. What was the amount of increase in management costs this year compared to last year?

G. What was the amount of increase in staff costs this year compared to last year?

H. What was the amount of increase in total labor costs this year compared to last year?

I. In what area or areas were this year's expense less than last year's expense?

J. What was the amount of profit made in the establishment this year?

• What was the amount of profit made last year?

K. Why do you think the operation's cost of sales food this year is higher than last year?

L. Why do you think the operation's cost of sales beverage this year is lower than last year?

Part II

You have been recently hired as general manager of a restaurant. It is September 1, and you must prepare the operating budget of this establishment for the first quarter of the upcoming calendar year and submit it to the corporate office. Since you have been at the operation for only a month or so, you must rely solely on historical data. You gather sales reports and records for the months of January through August of the current year.Using the data and the Excel budget worksheet provided below, prepare the operating budget for Lucky's for the months of January through March of the upcoming year. Also, here is the information you determined from the most recent sales and costs records:

A. Sales are 10 percent higher than those of the same month during the previous year.

B. Food cost percentage is steady at 32 percent.

C. Fixed labor costs are steady at $9,000 per month.

D. Variable labor costs are 15 percent of sales.

E. Occupancy costs will remain steady at $2,000 per month.

F. Other controllable costs are expected to be $10,000 per month.

G. Marketing costs have been fixed at $1,000 per month.

H. For January, February, and March of last year, Lucky's sales revenues were as follows:

• January: $60,000
• February: $50,000
• March: $55,000