1. Below are the budget assumptions and Performance Report for a local restaurant. Prepare a memo to senior management stating which variances are a concern and why. A. Your memo should include an appropriate heading (to, from, date, title). B. Your memo should include the profit variance and list all variances of concern. C. Your memo should state why these variances should concern management. Budget Assumptions # of meals Revenue Cost of ingredients Wages and salaries Utilities Rent Miscellaneous 1,800 $16.50q $6.259 $10,400 $800 + $0.20 $2,200 $600 + $0.809 Flex Budget 1,700 Activity Variances Rev/Spending Variances Budget 1,800 Actual 1,700 Meals served Revenue Cost of ingredients Wages & salaries Utilities Rent Misc NOI $29,700 $28,050 $27,920 11,250 10,625 11,110 10,400 10,400 10,130 1,160 1,140 1,080 2,200 2,200 2,200 2,040 1,960 2,240 $2,650 $1,725 $1,160 $1,650U 625 F 0 20 F $130U 485 U 270 F 60 F 0 280U $565U 0 80F $925 U