Design Layout References Mailings Review View Help E E O 10 A A Aav AaBbCcD( AaBbCcDd |AaBbCcDc = Editing Dictate Edi 1 Normal Body Text List Para... U Lab X , A v A D Font Paragraph Styles Voice Edit 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 . 6 . 1 . 7 . 1 . 8 . 1 . 9 . 1 .10 1 .11 1 .12. 1 .13 1 .14 1 .15. 1 .16 1 17 1 .18. 1 .19. 1 20 2. You have the following annual information about Moonlight Bar and Grill, which consists of three different operating segments. () The restaurant owner took another look at the various indirect costs and, on further analysis, discovered that some indirect costs would change, as shown below. Moonlight Bar and gril Income statement Current Indirect Costs if Bar Area For the Year ended december 31, 2020 Costs rented dining room Bar Area outdoor Patio total Administrative Expense $32,000 $29,000 Sales Revenue $206,900 $156,800 $186,000 $549,700 Advertising Expense 12,000 8,000 Direct Costs 164,00 145,000 152,000 461,000 Insurance Expense 6,000 4,200 Contribution Income $42,900 $11,800 $34,000 88,700 Repairs Expense 3,000 2,300 Indirect Costs 63.080 Utilities Expense 10.000 7.500 Operating Income $25,700 total $63,000 $51,000 The owner wants to allocate indirect costs to each area based on square footage, to analyze how each segment of the restaurant is performing. The dining room is 3,300 square feet, the bar area is 1,500 square feet and the If the bar area is not operated, it is estimated that outdoor patio sales revenue will decrease outdoor patio is 1,200 square feet. by 30% and direct costs will decrease by $20,000. Dining room sales revenue and direct costs will not be impacted. Prepare a revised income statement. With this new information, should required the owner accept the offer? a Allocate the indirect costs as indicated. Moonlight Bar and grill Moonlight Bar and grill Income statement Income statement For the Year ended december 31, 2020 For the Year ended december 31, 2020 dining room Bar Area outdoor Patio dining room outdoor Patio total total $206,90 $156,800 Sales Revenue Sales Revenue $186,000 $549,700 64,000 145,000 Direct Costs Direct Costs 152,000 461,000 Contribution Income Contribution Income 42,900 11,800 34,000 88,700 Indirect Costs Indirect Costs* 63,00 Income before Rent Operating Income $25,700 Rental Income Operating Income b) The owner of the restaurant has an offer from a smoothie shop to rent the bar area for $7,000 per year. Rent does not include any of the indirect costs; they will have to be absorbed by the other segments. Prepare a revised income statement and advise the owner if this if an acceptable offer or not. Moonlight Bar and grill Income statement For the Year ended december 31, 2020 Sales Revenue Direct Costs Contribution Income Indirect Costs Income before Rent Rental Income Operating Income fish (United States) Accessibility: Good to go FOCUS W 6 C Clear