12. The following information has been prepared by the manager of the Market Restaurant. It represents his best estimates of sales and various costs for the coming year. Using this information, prepare an operat- ing budget for the Market Restaurant for the coming year, following the illustration provided in this chapter. Food sales: $820,000 Beverage sales: $290,000 Cost of food: 36 percent of food sales Cost of beverages: 24 percent of beverage sales Variable salaries and wages: 20 percent of food sales Fixed salaries and wages: $102,000 Employee benefit: 25 percent of total salaries and wages Other controllable expenses: $95,000 Depreciation: $65,500 Interest: $55,000 Occupancy costs: $56,000 13. In the current year, the manager of the Downtowner Restaurant has been following the operating budget reproduced here For the coming year, the following changes are expected Food sales will increase by 10 percent b. Beverage sales will increase by 6 percent Food cost percent and beverage cost percent will remain the same d Fixed salaries and wagges-569.300 for this year-will increase by $8.00 Variable salaries and wages will be 16 percent of expected food sales e Employee benefits will remain the same percentage of salaries and wages Controllable expenses will increase by $12,000. QUESTIONS AND PROBLEMS $630,000 140,000 5770,000 $257,000 35,000 5287,000 5483,000 $173,250 45,045 82,000 Sales Food Beverage Total sales Cost of Sales Food Beverages Total costs Gross Profit Controllable Expenses Salaries and wages Employee benefits Other controllable expenses Total Controllable Expenses Income before Occupancy Costs, interest. Depreciation and Income Taxes Occupancy Costs Income before interest Depreciation, and income Taxes Interest Depreciation Total Restaurant Profit $300,295 $182,705 64,000 5118,705 $10,000 28500 538,500 580,205 & Occupancy costs will increase by $5,000 h. Interest and depreciation will remain the same