ACTIVITY 1B Objective To provide you with an opportunity to discuss changes to income and expenditure priorities with appropriate colleagues prior to implementation. This activity will need to be observed for assessment. As a simulated workplace activity as directed by the assessor; you will be given information on the current income and expenditure for one work area/project (as relevant to your organisation or area of work). You should read this through, looking for where any changes may be required. With the person acting as the finance manager, discuss whether this needs to be changed, identifying at least one change and your reason for this. Write down the outcome of your meeting in your workbook, and the change(s) you have recommended with your reason(s) why. Note to the assessor: You must ensure the learner has an appropriate simulated work environment to perform this activity, with a person representing the finance manager. The income and expenditure information must be relevant to the learner's organisation or area of work; this only needs to be for a short period of time, e.g., three months, and should highlight the need for more than one change. The learner and the person acting as the finance manager must be given adequate time to read this information prior to the meeting. The learner should be observed to ensure they participate appropriately in the discussion and display relevant knowledge and understanding about the information they have been given. Assessment of the learner's notes in their workbook must also be made to confirm they have correctly identified one change.Q 1b & 1C & 20 Blue Fish Grill Profit & Loss vs. Budget Y-T-D Actual Budget Variance Sales: Food Sales 36.878 78.2 870.000 77.0 $ 68.876 Food Sales Soit Beverge Sales 41.690 3.5 40.000 3.5 1.690 Total Food & Soft Beverage Sales $ 978.586 81 910.000 80.5 88.568 Beverage Sales 55.000 (6.401) Liquor Sales 889'8: 4.1 4.8 Draft Beer Sales 41.082 3.4 35.000 6.082 40.755 3.4 $2,000 3.7 1.245 Bottle Beer Sales Wine Sales 72.044 8.0 68.000 6.0 4.044 Total Beverage Sales 202.480 18.8 200.000 17.7 2.480 Merchandise & Other 18.458 1.4 20.000 1.8 (3.542) Total Gross Sales 1. 197.504 00.0 1, 130.000 100.0 37.504 Less: Comps & Discounts (34.580) (2.9 (30.000) (2.7) (4.580) Total Net Sales 1.162.944 1. 100.000 97.3 82.944 Cost of Sales: Food Cost Food (only) 322,187 34.4 278.400 32.0 43,787) Soft Beverge 7.141 17.1 8.000 15.0 (1 141) Total Food & Soft Beverage Cost 320.328 33.7 284.400 31.3 (44.928) Beverage Cost Liquor 10.222 21.0 9.900 18.0 (322) Bar Consumables 1.489 3.1 1.650 3.0 181 Draft Beer 10.513 25.6 8.750 25.0 (1,783) Bottle Beed 11.847 28.1 11.780 28.0 (87) Wine 22.898 31.8 22.440 33.0 (459) Total Beverage Cost 58.970 28.1 54.500 27.3 2.470) Merchandise & Other 4.735 28.8 5.000 25.0 285 Total Cost of Sales 39 1.033 32.7 343.900 30.4 (49.803) Labor: Management 91.055 7.8 90.000 8.2 (1,055) Hourly Staff 238.408 20.5 200.000 18.2 (38.408) Employee Benefits 85.747 5.7 83.800 5.8 (1.847) Total Labor 395.208 34.0 353.800 32.2 (41.408) Prime Cost 786.241 87.6 897.700 83.4 91,011) Other Controllable Expenses: Direct Operating Expenses 31.005 2.7 30.000 2.7 (1.005) Music & Entertainment 8.250 0.5 5.000 0.5 (1,250) Marketing 35.723 3.1 30,000 2.7 (5,723) Utilities 38.688 3.3 40.000 3.6 1,312 General & Administrative Expenses 52.580 45 50.000 4.5 (2.580) Repairs & Maintenance 22.158 1.0 18.000 1.6 (4.158) Total Other Controllable Expenses 186.402 16.0 173.000 15.7 (13,402) Controllable Income 190,301 16.4 222.300 20.8 38,290) Non-Controllable Expenses: Occupancy Costs 74.890 8.4 75,000 8.8 110 Equipment Leases 2.550 0.2 2.500 0.2 (50) Depreciation and Amortization 10.425 0.2 10.000 0.9 (425) Total Non-Controllable Expenses - Net 87.865 7.8 87.500 8.0 (385) Restaurant Operating Income 102.438 8.8 141.800 12.9 (32.384) Corporate Overhead 3,150 0.3 2,500 0.2 350 Interest Expense 892 0.1 955 0.1 (58) Net Income before Income Taxes 28.387 8.5 $ 138,345 12.8 ($32.958) All percentages are calculated as a percentage of Net Sales except Food, Beverage and Merchandise & Other cost of sales which are based on their respective sales