11. Lacir manages a German restaurant in a large western city. The restaurant's owner wants to know bow well Lacir did this year at generating sales, controlling costs, and providing a profit. The owner promised Lueir that he would give her a raise if she increased return on sales (profit margin) by at least 1 percent. Complete Lucir's P\&l. Should tucir receive a raise? \begin{tabular}{|c|c|c|c|c|c|} \hline 17 & Total labor & & & & \\ \hline 18 & Prime Cost & & & & \\ \hline 19 & Other Controllable Expenses & & + & & \\ \hline 20 & Direct operating expenses & $146,669 & & $145,357 & \\ \hline I & Music \& entertainment & 2,767 & & 8,386 & \\ \hline 22 & Marketing & 52,579 & & 69,883 & \\ \hline 23 & Utilities & 88,555 & & 97,836 & \\ \hline 24 & Administrative \& general expenses & 80,252 & & 78,269 & \\ \hline 25 & Repairs \& Maintenance & 41,510 & & 39,135 & \\ \hline 26 & Total other controllable expenses & & & & \\ \hline 27 & Controllable Income & & & & \\ \hline 28 & Non-controllable expenses & & & +8 & \\ \hline 29 & Occupancy costs & $144,000 & & $132,000 & \\ \hline 30 & Equipment leases & 0 & & +2 & \\ \hline & Depreciation \& amortization & 49,812 & & 61,498 & \\ \hline 32 & Total non-controllable expenses & & y & +1 & \\ \hline 33 & Restaurant Operating Income & & & + & \\ \hline 34 & Interest expense & 104,100 & & 93,378 & \\ \hline 35 & Income Before Income Taxes & & & +2 & \\ \hline 36 & Income taxes & 235,146 & & 343,150 & \\ \hline 97 & Net Income & & & & \\ \hline \end{tabular} Should Lucir receive a raise? Answer: Lucir's P\&L \begin{tabular}{|c|c|c|c|c|} \hline & Last Year & % & This Year & % \\ \hline \multicolumn{5}{|l|}{ Sales } \\ \hline Food & $2,647,415 & & $2,675,889 & \\ \hline Beverage & 498,119 & & 965,660 & \\ \hline \multicolumn{5}{|l|}{ Total sales } \\ \hline \multicolumn{5}{|l|}{ Cost of Sales } \\ \hline Food & $855,104 & & $1,074,420 & \\ \hline Beverages & 104,005 & & 115,879 & \\ \hline \multicolumn{5}{|l|}{ Total cost of sales } \\ \hline \multicolumn{5}{|l|}{ Labor } \\ \hline Management & $192,330 & & $204,227 & \\ \hline Staff & 576,989 & & 581,260 & \\ \hline Employee Benefits & 118,996 & & 122,994 & \\ \hline \multicolumn{5}{|l|}{ Total labor } \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{\begin{tabular}{|l|} Prime Cost \\ Other Controllable Expenses \end{tabular}}} \\ \hline & & & & \\ \hline Direct operating expenses & $146,669 & & $145,357 & \\ \hline Music \& entertainment & 2,767 & & 8,386 & \\ \hline Marketing & 52,579 & & 69,883 & \\ \hline Utilities & 88,555 & & 97,836 & a \\ \hline Administrative \& general expenses & 80,252 & & 78,269 & \\ \hline Repairs \& Maintenance & 41,510 & & 39,135 & \\ \hline \multicolumn{5}{|l|}{ Total other controllable expenses } \\ \hline \multicolumn{5}{|l|}{ Controllable Income } \\ \hline \multicolumn{5}{|l|}{ Non-controllable expenses } \\ \hline Occupancy costs & $144,000 & & $132,000 & \\ \hline Equipment leases & 0 & & 0 & \\ \hline Depreciation \& amortization & 49,812 & & 61,498 & \\ \hline \end{tabular}