A B D G H Financial Management - Contributory Income Statements 1. Joe's Bistro has three sales revenue departments with direct costs and the average monthly figures as shown below. Dining Catering 2800 sq. ft. 1200 sq. ft. Beverages TOTAL 600 sq. ft. 4600 Sq.ft. Departments Sales Revenue Cost of Sales Wages and Salaries Other direct costs Administrative Advertising Property Maintenance Utilities Depreciation Insurance Dining Catering Bar $ 194,000.00 $ 102,400.00 $ 86,000.00 $ 77,600.00 $ 28,912.00 $ 27,528.00 $ 64,020.00 $ 30,700.00 $ 10,680.00 $ 17,460.00 $ 8,192.00$ 6,548.00 $ 11,500.00 $ 9,500.00 $ 11,800.00 $ 4,200.00 $ 12,500.00 $ 5,000.00 A. Prepare a consolidated departmental contributory income statement showing each of the divisions side by side for comparison. B. Calculate the contributory income percentage for each of the three divisions C. Allocate the indirect expenses to the divisions and prepare a departmental income statement. Administrative and advertising expenses are allocated based on Sales Revenue. The remaining indirect expenses are allocated based on Square Footage used by each department. Financial Management - Contributory Income Statements Joe's Bistro has three sales revenue departments with direct costs and the average monthly figures as shown below. 1. Dining Catering 2800 sq. ft. 1200 sq. ft. Beverages TOTAL 600 sq. ft. 4600 Sq. ft. Departments Sales Revenue Cost of Sales Wages and Salaries Other direct costs Administrative Advertising Property Maintenance Utilities Depreciation Insurance Dining Catering Bar $ 194,000.00 $ 102,400.00 $ 86,000.00 $ 77,600.00 $ 28,912.00 $ 27,528.00 $ 64,020.00 $ 30,700.00 $ 10,680.00 $ 17,460.00 $ 8,192.00$ 6,548.00 $ 11,500.00 $ 9,500.00 $ 11,800.00 $ 4,200.00 $ 12,500.00 $ 5,000.00 A. Prepare a consolidated departmental contributory income statement showing each of the divisions side by side for comparison. + B. Calculate the contributory income percentage for each of the three divisions C. Allocate the indirect expenses to the divisions and prepare a departmental income statement. Administrative and advertising expenses are allocated based on Sales Revenue. The remaining indirect expenses are allocated based on Square Footage used by each department. DINING % OF CATERING TOTAL REV. $$$ Department CATERING % OF TOTAL REV. DINING $$$ TOTAL % OF ALL DEPT BAR $$$ BAR % OF TOTAL REV. Totals $$$ Sales Revenue $194,000 $102,400 $86,000 $77,600 Cost of Sales $28,912 $27,528 Marks out of 22 Gross Profit $30,700 $10,680 $64,020 Wages & Salaries $17,460 Other direct costs $8,192 $6,548 Contributory Income DINING ROOM CATERING BAR TOTAL Sales Revenue % Square Footage % Administrative Expense Advertising Expense Property Maintenance Marks out of 40 Utilities Expense Depreciation Expense Insurance Expense Total Expenses Operating Income + Name a problem that you can see above and what could be a possible solution? Write the answer in the box provided below. Marks out of 6 Name another problem that you can see above and what could be a possible solution? Write the answer in the box provided below