A restaurant uses a flexible budget to estimate profit each month. The restaurant expects to charge 15 per meal on average. Some costs are assumed to vary with the number of meals served. The restaurant estimates a variable cost of 5 per meal served. The restaurant also has monthly fixed costs of 10 000. (Adopted from McWatters et al., 2008)

Prepare a monthly flexible budget of total revenue, costs and profit based on

1 000 meals

1 500 meals

2 000 meals are served