Assume the approved food operations budget for the Hilotown Restaurant for 20X1 is as follows: $ % of Revenue Food revenue 1,400,000 100 Food cost 434,000 31 Payroll 364,000 26 Payroll taxes/benefits 42,000 3 Direct operating expenses 112,000 8 Entertainment 14,000 Advertising 42,000 Utilities 70,000 Administrative/general 56,000 Repairs/maintenance 14,000 Rent 70,000 Real estate/property taxes 28,000 Insurance 14,000 Interest expense 42,000 Depreciation 28,000 Income (profit) before taxes 70,000 1354I5NT325 Problem 3 Unforeseen problems beyond the control of the owner (ongoing terrorism alerts that have significantly reduced the tourist travel on which the restaurant relies) have caused a substantial reduction in revenue. In revenues down to $1,100,000. a. What will be the fixed costs under the new budget? b. Assuming the owner wants to maintain the original "bottom line" profit (income [profit] before taxes) of $70,000, how much in revenues will remain to be spent on variable costs? c. Assuming the owner is willing to break even on the restaurant's operation, how much in revenues will remain to be spent on variable costs?