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can someone paraphrase these two scenarios using the same numbers updated the pictures In order to analyze the effects of selling beer in the restaurant,
can someone paraphrase these two scenarios using the same numbers
updated the pictures
In order to analyze the effects of selling beer in the restaurant, I started by taking the original pro forma and adding in the direct effects of beer. This allowed me to see how beer impacted the overall financial standing of the business. On the Assumptions sheet, I added beer selling price, heer COGS, and percentage of customers who would purchase beer. I then changed the percentage of customers who would buy soda from 100% to 50% and the insurance monthly cost from $880 to $1,225. After doing this, I also added in the data for units of beer bought per week, weekly revenue of beer, and weekly costs of goods sold for beer. On the startup costs sheet, I increased the license fee from $1025 to $6275. After entering in all of this new data, the excel sheet was able to generate the new financial standings. Adding in beer to the equation caused the TOTAL revenue for the year to increase from $1,043,592.91 to 51,646,473.28. It also increased total expenses from $994,558.02 to $1,022,939.28. This gives us a total income before tax of S623,534 compared to the original $409,034.88. After taxes, the net income is higher than before, jumping from $310,866.51 to $S25,365.92. Although the decision to serve beer in the restaurant increases total expenses, it is overall a smart business decision. It leaves you with $214,499.41 more at the end of the year than you would have if you did not serve beer. So in conclusion, I would personally advise you to begin selling beer in the restaurant in order to increase profit for the year. D To gain an understanding of the effects of hiring the comedian, I simply went into the Assumptions sheet and changed the customers per hour on weekends from 45 to 52. I then added in a cell to show the comedian's pay of $1,950 per month. On the budget sheet, i modified the salaries column to include this pay in addition to the already calculated salaries of the manager and assistant manager. Hiring a comedian appears to be a positive decision, financially. It does lead to more expenses, as more supplies will be needed for the additional customers and there is an added salary. But the expenses are not enough to outweigh the additional money that would be coming in Total revenue, total expenses, and total income before takes all increase after hiring the comedian. When looking at the net income at the end of the year we see it jump from $310,866.51 to $338,319.20. This additional money is enough to support the decision of hiring a comedian on the weekends. To gain an understanding of the effects of hiring the comedian I simply went into the assumption sheet and change the customers per hour on weekends from 45 to 52. I didn't add it in a cell to show the comedians pay of $1950 per month. On the budget sheet I modify the salaries call them to include this pay in addition to the already calculate the salaries of the manager and assistant manager. Hiring a comedian appears to be a positive decision financially. It does lead to more expenses as more supplies will be needed for the additional customers and there is an added salary. But the expenses are not enough to outweigh the additional money that would be coming in. Total revenue, Total expenses, and total income before taxes all increase After hiring the comedian. When looking at the net income at the end of the year we see a jump from $310,866.51 to $338,319.20. This Additional money is enough to support the decision of hiring a comedian on the weekends! In order to analyze the effects of selling beer in the restaurant I started by taking the original pro forma and adding in the direct effects of beer. This allowed me to see how beer impacted the overall financial standing of the business. On the assumption she added beer selling price, beer COGS, and percentage of customers who would purchase beer. I didn't change the percentage of customers who would buy soda from 100% to 50% and the insurance monthly cost from $880-$1225.After doing this also added in the data for units of beer but per week, weekly revenue of beer, and weekly cost of goods sold for beer. On the startup cost sheet, I increase the license fee from $1025 to $6275.After entering in all of this new data the excel sheet was able to generate a new financial standing. Adding in beer to the equation caused the total revenue for Year to increase from $1,043,592.91 to $1,646,473.28. It also increases total expenses from $994,558.02 to $1,022,939.28. This gives us a total income before tax of $623,534 compared to the original $409,034.88. After taxes the net income is higher than before jumping from $310,866.51 to $525,365.92. Although the decision to serve beer in the restaurant increases total expenses, it is overall a smart business decision. It leaves you with $214,499.41 more at the end of the year then you would have if he did not serve beer. So, in conclusion I would personally advise you to begin selling beer in the restaurant in order to increase profit for the year Step by Step Solution
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