Amy Viking needs help completing her 2018 Budget and her variance analysis comparing 2018 actual results to the budget 1. Based on the following information, complete the 2018 Budget $$ and %: a. Food sales are forecast to increase 5% and beverage sales 8% b. Food Cost of Sales are forecast at 35% of sales, while beverage cos will remain at 25% of sales. C. Labor costs are projected to increase 3% d. All other operating expenses are projected to increase 5% e. Depreciation and interest expense will remain the same. 2. Complete the $$ and % Variance Analysis for Viking Bowl 3. Answer the two questions below. Viking Bowl Budget Worksheet for 2018 and Variance Worksheet for 2018 2017 Actual 2018 Budge 2018 Actual Variance SALES Food Beverage 295,000 155,000 450,000 100.0% 65.6% 34.4% 315,000 175,000 490,000 100.0% 64.3% 35.7% Total Sales COST OF SALES: Food Beverage 103,250 38,750 142,000 35.0% 25.0% 31.6% 110,000 42,000 152,000 34.9% 24.0% 31.0% Total Cost of Sales GROSS PROFIT Food Beverage 191,750 116,250 308,000 65.0% 75.0% 68.4% 205,000 133,000 338,000 76.0% Total Gross Profit 69.0% OPERATING EXPENSES Salaries and Wages Direct Operating Expenses Marketingg Repairs and Maintenance Depreciation 267% 5.6% 22% 5.6% 22% 42.2% 26.2% 3.3% 22.9% 25.5% 5.5% 120,000 25,000 10,000 25,000 10,000 190,000 118,000 15,000 103,000 28,840 74,160 125,000 27,000 9,500 28,000 10,000 199,500 138,500 15,000 123,500 34,580 88,920 20% 40.7% 28.3% Total Operating Expenses Operating Income Interest Income Before Income Taxes Income Taxes (28%) Net Income 25.2% 16.5% 1. What drove the Gross Profit Variance increase? 2. Is Amy doing a good job managing her profitability