1.As a manager you realize that the amount of net profit planned in the 20xx budget is lower than the goal you wish to achieve of 8%. Which of the following would be an effective strategy to help improve the net profit for the 20xx year? Determine ways to increase sales beyond the amount already planned. Determine ways to reduce the costs associated with producing the meals, i.e.,lower labor cost, lower food cost, lower supply cost, lower variable costs as much as possible. As a manager it is critical to increase sales as much as possible, and lower variable operating costs as much as possible. None of the above are correct.

2.How many more dollars are being budgeted in 20xx for total expenses? $53,857 $27,688 $26,169 $36,656 2.25 points QUESTION 3 How many more meals are being projected to be served in the 20xx year? 1,200 1,000 100 same as in the current budget year 2.25 points QUESTION 4 How much more is budgeted for food for 20xx over current budget? $19,551 $16,049 $36,745 $26,169 2.25 points QUESTION 5 If the food budget for 20xx were to increase by 3% over the current year budget, the new dollar amount for food in the 20xx budget would be: the same. $413,258.66. $417,271.00. None of the above are correct. 2.25 points QUESTION 6 If your goal is to achieve a food cost of 35% each year, and based on the data in the Proposed 20xx Budget Worksheet, what can you conclude? Food cost % projected in the 20xx budget will not meet the established goal. The proposed 20xx budget would indicate that food will consume 39.06 cents of every revenue dollar earned in 20xx. Food cost dollars projected for 20xx will be $16,049 more than was spent for food in the current budget year. All of the above are correct. 2.25 points QUESTION 7 If your goal is to achieve a labor cost of 35% in 20xx, and based on the data in the Proposed 20xx Budget Worksheet, what can you conclude about the proposed budget? The labor cost planned in the budget will meet goal established. Labor cost planned for in the proposed budget comes in less than desired goal. The labor cost in 20xx budget is 1.46% less than current budget year. None of the above are correct. 2.25 points QUESTION 8 In examining the 20xx budget, sales revenue for 20xx: is expected to be about 1% greater than in the current year's budget. will be $10,577 more in 20xx than in the current budget year. will not be significant enough to offset the increase in cost of labor, food, and other expenses, and therefore, less profit will be generated in the proposed 20xx budget. All of the above are correct. 2.25 points QUESTION 9 In examining the income per meal on the Proposed 20xx Budget Worksheet, what can you conclude? Income per meal is projected to increase by .02 cents in 20xx. Income per meal is expected to be $4.03 in 20xx. While the income per meal will increase in 20xx, the actual profit per meal will decrease by .10 cents per meal. All of the above. 2.25 points QUESTION 10 Overtime hours anticipated in the 20xx budget will: decrease by 50 hours in 20xx. be the same as in the current budget year. increase by 100 hours in 20xx. increase by 50 hours in 20xx. 2.25 points QUESTION 11 Productive and non-productive labor hours anticipated in the 20xx budget: will be lower than in the current budget year. will be the same as in the current budget year. will increase by 2,080 hours and 3.78%. None of the above. 2.25 points QUESTION 12 What is the % of profit planned in the 20xx budget year? 5.0% 4.32% 3.78% 2.59% 2.25 points QUESTION 13 What is the projected sales revenue for the 20xx budget? $1,057,709 $1,068,286 $401,222 $417,271 2.25 points QUESTION 14 What is the total cost per meal projected to be in 20xx? $3.92 $3.80 $4.03 $4.01 2.25 points QUESTION 15 What is the total expense budget for the 20xx budget year? $27,688 $26,169 $1,040,508 $1,003,852 2.25 points QUESTION 16 What was the % of profit in the current budget year? 2.59% 5.09% 3.78% 4.73% 2.25 points QUESTION 17 What was the Net Income/Loss expected in the 20xx budget? $27,688 $53,857 $37,745 $26,169 2.25 points QUESTION 18 What was the food cost % projected to be in the 20xx budget? 37.93% 38.43% 39.06% 9.18% 2.25 points QUESTION 19 What was the total expense in the current budget year? $1,040,597 $36,745 $1,003,852 $26,169 2.25 points QUESTION 20 What were total sales for the current budget year? $1,057,709 $1,068,286 $401,222 $417,271

Proposed 20xx Budget Worksheet Doster Caf Current Year Budget 20xx Budget % Variance % Variance Sales (Revenue) $1,057,709 100% $1,608,286 100% $10,577 Expenses Food $ 401,222.00 37.93% $ 417,271.00 39.06% $ 16,049.00 Labor 391,022.00 36.97% 410,573.00 38.43% 19,551.00 Supplies 77,000.00 7.28% 77,000.00 7.21% - Rent 97,604.00 9.23% 98,084.00 9.18% 480.00 Minor Equipment 11,443.00 1.08% 11,443.00 1.07% - Advertising 5,462.00 0.52% 6,008.00 0.56% 546.00 Utilities 3,658.00 0.35% 3,568.00 0.33% (90.00) Liability Insurance 5,200.00 0.49% 5,320.00 0.50% 120.00 Miscellaneous 11,241.00 1.06% 11,241.00 1.05% - Total Expense $ 1,003,852.00 94.91% $ 1,040,508.00 97.39% $ 36,656.00 Profit/Loss $ 53,857.00 5.09% $ 27,778.00 2.60% ($26,079.00) BUDGET STATISTICS Current Year 20xx Budet Variance % Meals Served 263,778 264,978 1,200 0.45% Prod/non-Prod 55,033 57,113 2,080 3.78% Labor Hours Anticip OT Hours Anticip 572 672 100 17.48% Meal/labor hour 5 5 0 0.00% (Prod,Non-Prod,OT) Sales/meal $4.01 $4.03 $0.02 0.50% Food Cost/meal $1.52 $1.57 $0.05 3.29% Labor Cost/meal $1.48 $1.55 $0.07 4.73% Supply Cost/meal $0.29 $0.29 $0.00 0.00% Other costs/meal $0.51 $0.51 $0.00 0.00% TOTAL COST/MEAL $3.80 $3.92 $0.12 3.16% INCOME PER MEAL $4.01 $4.03 $0.02