Question
Customer Volume 2018 Actual 1,066,000 2019 Actual 1,105,000 Net Sales 2018 Actual $10,523,440 2019 Actual $10,508,520 Cost of Sales: Food 2018 Actual $6,340,206 2019 Actual
Customer Volume
2018 Actual 1,066,000
2019 Actual 1,105,000
Net Sales
2018 Actual $10,523,440
2019 Actual $10,508,520
Cost of Sales:
Food
2018 Actual $6,340,206
2019 Actual $6,362,772
Total Labor
2018 Actual $995,160
2019 Actual $1,000,480
Cost of Sales
2018 Actual $7,335,366
2019 Actual $7,363,252
Gross Profit
2018 Actual $3,188,074
2019 Actual $3,145,268
Other Operating Expenses:
2018 Actual $2,270,665
2019 Actual $2,222,835
Operating Profit
2018 Actual $917,409
2019 Actual $922,433
Other Data:
Average Operating Assets
2018 Actual $7,500,000
2019 Actual $7,500,000
Food Costs: % variable
2018 100%
2019 100%
Total Labor Costs: % variable
2018 70%
2019 70%
Other Op. Expenses: % variable
2018 60%
2019 60%
What were the major factors that contributed to the difference between profits from 2018 to 2019? (Tip: Variances analysis is needed)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting General Journal
Authors: Claudia Gilbertson
11th Edition
1337623121, 9781337623124
