Scenario 1 A long-established caf located in inner west Brisbane residential suburb is facing it's time to figure out their budget for the coming quarter. During the last quarter, the caf had spent roughly $500 at local butcher, $200 at Vegetable barns plus $300 on coffee beans & and dry goods each week. The Caf also has monthly rent of $3,000 for the venue and is responsible for it's electricity and gas bills which is roughly $500 a month. Fees for waste management is included in the rent. The coffee machine is due to half yearly service in the coming quarter, which normally cost $250 each time. Bill sent from the accountant to process accounting work from last quarter is worth $2,500, this includes professional fee of the accountant, relevant taxes and superannuation, and the bill is due sometime in the coming quarter. The caf is run by owner's family who are rely on the profit of business. 

They however do hire a casual staff to help the peak time every weekend when they normally have double amount of businesses. The staff is rostered 4 hrs every Saturday and Sunday morning and got paid by legal minimum with required loading. Considering the caf is in residential area, hence their business is relatively stable, and in order to seek improvement the caf pays internet social media platform $100 every month to advertise. The Caf sets the margin of it's menu on 75% Question 3: Assume the coming quarter is October to December, advise the caf owner what budget deviation may occur in the period. And what approaches can be taken to alleviate the impact. 

Question 3: 

Assume the coming quarter is October to December, advise the caf owner what budget deviation may occur in the period. And what approaches can be taken to alleviate the impact.

Answer rating: 100% (QA)

The cafe owner should anticipate potential budget deviations for the October to December quarter Some potential deviations and approaches to alleviate ... View the full answer