14. Referring to Question 13, assume that the operating budget you prepared for the upcoming year has been adopted. After the first six months of the year, financial records reveal the following: a. Food sales have increased by 12 percent rather than by the 10 percent anticipated. b. Beverage sales have increased by 5 percent rather than by 6 percent. Sales Food $630,000 Beverage 140,000 Total sales $770,000 Cost of Sales Food $252,000 Beverages 35,000 Total costs $287,000 Gross Profit $483,000 Controllable Expenses Salaries and wages $173,250 Employee benefits 45,045 Other controllable expenses 82,000 Total Controllable Expenses $300,295 Income before Occupancy Costs, Interest, Depreciation, and Income Taxes $182,705 Occupancy Costs 64,000 Income before Interest, Depreciation, and Income Taxes $118,705 Interest $10,000 Depreciation 28,500 Total $38,500 Restaurant Profit $80,205 QUESTIONS AND PROBLEMS 69 c02.indd 69 7/25/08 9:51:01 AM c. Food cost percent is 1 percent lower than budgeted, but beverage cost percent is 2 percent higher. d. Variable salaries and wages are 14 percent of food sales, rather than the 16 percent anticipated. Assuming that the trends evident in the first six months continue for the rest of the year and that both sales and costs are equally divided between the two halves of the year, prepare a revision of the budget for the second six - month period.