Cain's Truffles is a gourmet dessert restaurant in Boston. Brigitte Cain, the sole proprietor, expanded to a second location in Bediond, 3 years ago. Recently, Cain decided to enroll in a PhD program and retire from active management of the individual restaurants but confinues to oversee the entire company She hired a manager for each resthurant. (1) (Click the icon to view the additional information). Rend the requirements: Requirement 1. Prepare income staternents for each restaurant and for the compacy as a whole. Use a format that alows easy assesement of each manager's performance and each rostaurant's economic performance: Eegin by preparing the incorme statement for the compary as a whole, then prepared the income statements for each restautant. More info In 20x3, each had sales of $1,200,000. The Bedlord restaurant is ste pricing iower than the Boston restaurant to establiah a customer base. Variable expenses run 55% of sales for the Boston restaucant and 60% of sales for the Bediord restaurant. Each manager is responsible for the ront and some other fied costs for his or her restautant. These costs amounted to $100,000 for the Boston restaurant and $85,000 for the one in Bedford. The dfference is primanly due to lower rent in Bedfeed, in addition. several costs, whe as advertising, legal services, accounting. and personnel services, wero centralized The managers had no control of these expenses, but some of thern directly benofiled the individual restaurants. Of the $405.000 cost in this category, $125.000 related to Boston and $190,000 to Bedlord, where most of the additonal cost in Bedford is due to the cost of extra adverssing to build up its customer base. The remaining $90,000 was general corporabe overiead. In 203, each had sales of $1,200,000. The Bedford restaurant is still pricing lower than the Boston restaurant to establish a customer base. Variable expenses run 55% of sales for the Boston restaurant and 60% of sales for the Bedford restaurant. Each manager is responsible for the rent and some other fixed costs for his or her restaurant. These costs amounted to $100,000 for the Boston restaurant and $85,000 for the one in Bedford. The difference is primarily due to lower rent in Bedford. In addition, several costs, such as advertising, legal services, accounting, and personnel services, were centralized. The managers had no control of these expenses, but some of them directly benefited the individual restaurants. Of the $405,000 cost in this category, $125,000 related to Boston and $190,000 to Bedford, where most of the additional cost in Bedford is due to the cost of extra advertising to build up its customer base. The remaining $90,000 was general corporate overhead. Requirements 1. Prepare income statements for each restaurant and for the company as a whole. Use a format that allows easy assessment of each manager's performance and each restaurant's economic performance. 2. Using only the information given in this exercise do the following: a. Evaluate each restaurant as an economic investment. b. Evaluate each manager. Cain's Truffles is a gourmet dessert restaurant in Boston. Brigitte Cain, the sole proprietor, expanded to a second location in Bediond, 3 years ago. Recently, Cain decided to enroll in a PhD program and retire from active management of the individual restaurants but confinues to oversee the entire company She hired a manager for each resthurant. (1) (Click the icon to view the additional information). Rend the requirements: Requirement 1. Prepare income staternents for each restaurant and for the compacy as a whole. Use a format that alows easy assesement of each manager's performance and each rostaurant's economic performance: Eegin by preparing the incorme statement for the compary as a whole, then prepared the income statements for each restautant. More info In 20x3, each had sales of $1,200,000. The Bedlord restaurant is ste pricing iower than the Boston restaurant to establiah a customer base. Variable expenses run 55% of sales for the Boston restaucant and 60% of sales for the Bediord restaurant. Each manager is responsible for the ront and some other fied costs for his or her restautant. These costs amounted to $100,000 for the Boston restaurant and $85,000 for the one in Bedford. The dfference is primanly due to lower rent in Bedfeed, in addition. several costs, whe as advertising, legal services, accounting. and personnel services, wero centralized The managers had no control of these expenses, but some of thern directly benofiled the individual restaurants. Of the $405.000 cost in this category, $125.000 related to Boston and $190,000 to Bedlord, where most of the additonal cost in Bedford is due to the cost of extra adverssing to build up its customer base. The remaining $90,000 was general corporabe overiead. In 203, each had sales of $1,200,000. The Bedford restaurant is still pricing lower than the Boston restaurant to establish a customer base. Variable expenses run 55% of sales for the Boston restaurant and 60% of sales for the Bedford restaurant. Each manager is responsible for the rent and some other fixed costs for his or her restaurant. These costs amounted to $100,000 for the Boston restaurant and $85,000 for the one in Bedford. The difference is primarily due to lower rent in Bedford. In addition, several costs, such as advertising, legal services, accounting, and personnel services, were centralized. The managers had no control of these expenses, but some of them directly benefited the individual restaurants. Of the $405,000 cost in this category, $125,000 related to Boston and $190,000 to Bedford, where most of the additional cost in Bedford is due to the cost of extra advertising to build up its customer base. The remaining $90,000 was general corporate overhead. Requirements 1. Prepare income statements for each restaurant and for the company as a whole. Use a format that allows easy assessment of each manager's performance and each restaurant's economic performance. 2. Using only the information given in this exercise do the following: a. Evaluate each restaurant as an economic investment. b. Evaluate each manager