1. Company: YZA Hospitality

Scenario: Budget Preparation

Data:

• Expected Revenue: $1,000,000
• Variable Costs: 40% of Revenue
• Fixed Costs: $200,000

Requirements:

1. Prepare the budgeted income statement.
2. Calculate the expected profit.
3. Discuss the role of budgeting in cost control.
4. Provide recommendations for budget monitoring.