16. Below is the information for the initial budget (before tax) being planned by the Pretoria Restaurant for the following year i. Help the manager prepare the budget for next year on the table provided. Revenue (Food) Revenue (Beverage) Food Cost 31% Beverage Cost = 21% Labour Cost (Payroll) = 33% $895,000 $155,000 Employee benefits = 14% of labour cost (payroll) Other operating expenses = 11% All fixed cost = 10% Initial Budget for Pretoria Restaurant next year Food Revenue Beverage Revenue Total Revenue Food Cost Beverage Cost Labour Cost (Payroll) Employee Benefits Other Operating Expenses Fixed Costs Total Costs Net Profit ii. The owner does not approve of the initial budget. Working together and based on the 1st proposal above, the owner and the manager believe they can accomplish the following: Implement marketing plans to increase the number of guests consuming food by an additional 12,000 (Average Guest food check = $27.00) Increase beverage revenues by 8% over initial estimates Decrease food cost to 30% Decrease beverage cost to 19% Decrease payroll costs to 32% (but benefit cost will increase by 6% over the initial budget because of new payroll taxes not included in the original budget) Decrease other operating expenses to 10% Note: fixed costs will remain at the same dollar amount as in the original budget. What is the revised estimate of budgeted profit before tax? Revised budget for the Pretoria restaurant for next year Food Revenue Beverage Revenue Total Revenue Food Cost Beverage Cost Labour Cost (Payroll) Employee Benefits Other Operating Expenses Fixed Costs Total Costs Net Profit