Question
CASE STUDY: THE BOHO RESTAURANT The difference between well managed restaurants and not so well managed restaurants is the degree of attention they pay to
CASE STUDY: THE BOHO RESTAURANT
"The difference between well managed restaurants and not so well managed restaurants is the degree of attention they pay to the numbers
The manager of Boho Restaurant has just received an income statement report comparing the establishments financial performance this year to last years performance.
After reviewing the below financial report, answer the questions that follow to help the manager better understand the operation and its financial performance.
Restaurant Income Statement
SALES | This Year | Last Year |
Food | $ 750,000 | $ 690,000 |
Beverage 300,000 310,000
Total Sales | $1,050,000 | $1,000,000 |
COST OF SALES | ||
Food | $250,000 | $225,000 |
Beverage 80,000 83,000
Total Cost of Sales | $330,000 | $308,000 |
LABOR | ||
Management | $ 55,000 | $ 52,000 |
Staff | 225,000 | 221,500 |
Employee benefits | 85,000 | 83,500 |
Total Labor | $365,000 | $357,000 |
Prime Cost $695,000 $665,000 |
Other Controllable Expenses: |
|
|
Non controllable Expenses: |
Rent | $95,000 | $95,000 |
Depreciation | 6,000 | 6,000 |
Licenses/permits | 500 | 450 |
Leases | 2,500 | 2,500 |
Total Non-controllable Expenses | $104,000 | $103,950 |
|
Operating Income | $179,350 | $162,860 |
Interest expense | 18,000 | 19,000 |
Other (income) expense 500 500
Income Before Taxes $160,850 $143,360 |
- What was the difference between the operations food sales this year from the previous year?
- Does this mark an improvement or a decline?
- What was the difference between the operations beverage sales this year from the previous year?
- Does this mark an improvement or a decline?
- What was the difference between the operations total sales this year from the previous year?
- Does this mark an improvement or a decline?
- Did the operation spend more or less for food when comparing this years expense to last years expense?
- By how much?
- Did the operation spend more or less for beverages when comparing this years expense to last years expense?
- By how much?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started