3. An analysis of the 4c Company's restaurant costs for the Year 2007 revealed the following: Food and Beverage: Directly variable with total sales revenue Salary and Wages: $156,400 fixed; the remainder are directly variable with total sales Laundry: Directly variable with total sales revenue revenue . Kitchen fuel: $3,800 fixed; the remainder are directly variable with total sales revenue China and tableware are directly variable with total sales revenue Glass is directly variable with total sales revenue. Contracted cleaning is fixed Licenses are fixed Other operating expenses are directly variable with the total sales revenue Administrative and general is fixed Marketing is fixed Utilities costs: $3,000 fixed; the remainder directly variable with total sales revenue Insurance is fixed Rent is fixed Interest is fixed Depreciation is fixed a. Refer to the income statements in Group Case Study 1 and calculate the restaurant's total variable costs as a percentage of total sales revenue. b. Calculate the restaurants total fixed costs c. Calculate the restaurant's breakeven sales revenue and also express the breakeven in terms of the number of guests (using the average check from Group Case Study 1) d. To increase the operating income by $20,000 in Year 2007's sales revenue, how many extra guests are required? 4C will spend $1,000 for additional advertising and promotion as a fixed cost for Year 2007. B3 IX fix 458602 B D E G H Common-size Income Statement 458,602 180,509 6.39.111 71.8% 28.2% 100.0% 6,128 181,110 (5,915) 181,323 39.5% 3,207 38,307 (2.211) 39,303 220,626 418,485 21ROS 34 SX 65.5% 4c Company Income Statement 1 For the Year ended December 31, 2007 2 Sales Revenue 3 Food Operations S 4 Beverage Operations 5 Total Sales Revenue 6 7 Cost of Sales, Food 8 Beginning Inventory 9 Purchases 10 Less: Ending Inventory 11 Cost of Sales, Food 12 13 Cost of Sales, Beverages 14 Beginning Inventory 15 Purchases 16 Less Ending Inventory 17 Cot of Sales Beverages 18 Total Cost of Sales 19 Gross Margin 20 21 Operating Expenses 22 Salaries and wages expenses s 23 Laundry Expense 24 Kitchen Fuel Expense 25 China and tableware Expense 26 Glassware Expense 27 Contract Cleaning expense 28 Licenses Expense 29 Other Operating Expense 30 Administrative and general Expenses 31 Marketing Expenses 32 Utilities Expenses 33 Insurance Expense 34 Rent Expense 35 Interest Expense 36 Deprecition Expense ($13,752 + $6,372) 37 Total Operating Expenses 38 Operating Income 39 Income Tax expense (544,028 x 229] 40 Net Income $ 41 42 43 44 45 46 223,543 16,609 7,007 12,214 1,605 5,906 3,205 4,101 15,432 6,917 7,918 1,895 24,000 23,981 35.0% 2.6% 1.1% 1.9% 0.3% 0.9% 0.5% 0.6% 2.4% 1.196 1.2% 0.3% 3.8% 3.8% 20,124 374,457 44,028 9.686 34,342 58.6% 6.9% 1.5 S. 48 49 50 51 52 53 54 55 56 4C Income Statement and common Case Stuchy ? #workchont X Times New R... 12 A- A+ Wrap Text Number Paste B U- Merge & Center $ - % > B4 x fx D E F G Calculation process Amount (5) VC% Fixed cost (SS) A 1 Group Case Study 3 Worksheet 2 3 Analysis of restaurant costs, Year 20 4 Cost of Food & Beverage 5 Salaries and wages expense 6 Fixed portion 7 Variable portion 8 Laundry 9 Kichen fuel 10 Fixed portion 11 Variable portion 12 China & tableware expenses 13 Glassware expense 14 Contact learning expense 15 Licenses 16 Other opearting expenses 17 Administrative and general expenses 18 Marking expenses 19 Utilies expenses 20 Fixed portion 21 Variable portion 2 Insurance expense 23 Rent expense 24 Interest expense e Deprecation expense 26 Totals 27 28 09 30 31 32 33 34 35 36 4C Income Statement and Common Case Study 2 #2 worksheet Case Study 2 13 Worksheet + Ready OCT 25 ID ... )))