3. In the previous year, the manager of the Pacific Restaurant had been following the operating budget shown in column 1 of the worksheet below. For the upcoming year, the following changes are expected: a. Food sales will increase by 10 percent. b. Beverage sales will increase by 6 percent. c. Food cost percent and beverage cost percent will remain the same. d. Fixed salaries and wages-569,300 for this year will increase by $8,000. Variable salaries and wages will be 16 percent of expected food sales. e. Employee benefits will remain the same percentage of salaries and wages. 1. Controllable expenses will increase by $12,000. g. Occupancy costs will increase by $5,000. h. Interest and depreciation will remain the same. Given these anticipated changes, prepare an operating budget for the Pacific Restaurant for the upcoming year. USE THE FOLLOWING WORKSHEET TO CALCULATE THE UPCOMING YEAR"S BUDGETED AMOUNTS: Changes Upcoming year $ Previous Year 630,000 140,000 770,000 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 252,000 35,000 287,000 483,000 173,250 45,045 82.000 300.295 LS A s 3. In the previous year, the manager of the Pacific Restaurant had been following the operating budget shown in column 1 of the worksheet below. For the upcoming year, the following changes are expected: a. Food sales will increase by 10 percent. b. Beverage sales will increase by 6 percent. c. Food cost percent and beverage cost percent will remain the same. d. Fixed salaries and wages-569,300 for this year will increase by $8,000. Variable salaries and wages will be 16 percent of expected food sales. e. Employee benefits will remain the same percentage of salaries and wages. 1. Controllable expenses will increase by $12,000. g. Occupancy costs will increase by $5,000. h. Interest and depreciation will remain the same. Given these anticipated changes, prepare an operating budget for the Pacific Restaurant for the upcoming year. USE THE FOLLOWING WORKSHEET TO CALCULATE THE UPCOMING YEAR"S BUDGETED AMOUNTS: Changes Upcoming year $ Previous Year 630,000 140,000 770,000 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 252,000 35,000 287,000 483,000 173,250 45,045 82.000 300.295 LS A s