1. Nicole Englezakis manages a South African restaurant in a large southern city. The owner wants to know how well Nicole did this year at generating sales, controlling expenses, and providing a profit. (a-h: 1 point each chart: 8 points) Last Year ($) % This Year (5) % SALES Food 3,706,38185.1% 3,746,245 74.2017 Beverage 647,555 14.9% 1,255,358 25.12. Total Sales 14,353,936 100% S001,603.00 1002 COST OF SALES Food 1,282,656 29.5% 1,611,630 32 22 Beverage 145,607 W 3,3% 162,231 3.22 Total Cost of Sales 1428,263 N 32.82 1173.86) 35.57 LABOR 348,615 392,626 2.972 Management 882,295 20,3% 854,153 17.32 Staff 190,394 44% 196,790 3.92 Employee Benefits 32.62.11.455,56929.1% Total Labor 665719,227,432 64.57. $1,421,304 -F2,849,561 PRIME COST 234,670 OTHER CONTROLLABLE EXPENSES Direct Operating Expenses 4,427 Music and Entertainment 84,126 Marketing 141, 688 232,571 9.7 % 0.1% 13,418 0.32. 1.97. 111,813 2.21 3.57 156,538 2.12 125,230 2.51 151 62,616 1:31. 15.29. 1502,186 14.0% LIGA Utilities 128,403 Administrative and General 66,416 Repairs and Maintenance Total Other Controllable Expenses 1659.130 1 CONTROLLABLE INCOME 0944,6 39 19.4% 19.4%B1011,987 21.4% NON-CONTROLLABLE EXPENSES Occupancy Costs Depreciation 230,400 5.3% 79,699 1.37 310,099 7.1%. 211,200 4.2% 98,397 2.0% 309,579 6.2% Total Non-Controllable Expenses RESTAURANT OPERATING INCOME $534,540 12.3% $762,990|15.2% Interest Expense 166,560 5.9%/49,405 3.0% INCOME BEFORE INCOME TAXES 13 67,980 (8.5% 612986 12.32 Income Taxes 147,192 347. 245,194 4.9% NET INCOME 140 220,79 5.1% (1) Complete Terry's USAR P&L above using vertical analysis (Fill in the gray blanks) and show your work for calculating the: (a-h: 1 point each, chart: 8 points) (a) Prime cost (b) Controllable income (c) Restaurant operating income (d) Net Income (e) Food sales percentage 2 Name: (f) Food cost percentage te) Beverage cost percentage th) Food and beverage cost percentage (2) When comparing this year to last year, was Nicole's marketing expense in dollars higher or lower? (2 points) (3) Was Nicole's marketing expense percentage higher or lower this year? (2 points) (4) Do you think that her marketing expense this year positively or negatively contributed to her revenues? Why? (3 points) (5) When comparing this year to last year, was Nicole's labor expense in dollars higher or lower? (2 points) (6) Was Nicole's labor expense percentage higher or lower this year? (2 points) (7) Do you think that her salaries and wages expense this year positively or negatively contributed to her net income? Why? (3 points) (8) The owner promised Nicole that he would give her a false she increased the operation's net income by at least 2% of total sales. Should Nicole receive a raise? Why or why not?3 points) 3
