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Carreras Caf is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 30 percent

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Carreras Caf is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 30 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,700 meals at an average price of $20. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meals) Variable service costs (with respect to meals) Food costs Labor Other variable costs Fixed service costs Total service costs Marketing and administrative costs Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs Total costs $10,800 16,300 5,900 9, 100 $42,100 6,600 4,400 $11,000 $53, 100 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Carreras Caf Budgeted Income Statement For the month of June Sales revenue $ 36,660 Service costs: Food cost S 3,726 Prepare a budgeted income statement for June. (Do not round intermediate calculations.) Answer is complete but not entirely correct. Carreras Caf $ 36,660 X Budgeted Income Statement For the month of June Sales revenue Service costs: Food cost Labor Other variable costs Fixed service costs 3,726 4,890 X 1.770 9,100 $ 19,486 17,174 $ Total service costs Gross profit margin Marketing and Administrative Marketing (variable) Administrative (fixed) $ 1,980 4,400 S Total marketing and administrative costs Operating profit 6,380 10,794

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