Exercise 3.1		Barnaby's Hideaway
		Income Statement
		Year Ended December 31, 20XX
				Change	Upcoming
Sales					Year
		$ 1,120,964.00		$ 56,048.20	$ 1,177,012.20
		$ 465,200.00		$ 23,260.00	$ 488,460.00
			$ 1,586,164.00	$ 79,308.20	$ 1,665,472.20
Cost of Sales
		$ 392,337.00		$ 19,617.27	$ 411,954.27
		$ 102,344.00		$ 5,117.20	$ 107,461.20
			$ 494,681.00	$ 24,734.47	$ 519,415.47
Gross Profit			$ 1,091,483.00	$ 54,573.73	$ 1,146,056.73
Controllable Expenses
		$ 396,541.00		$ 15,861.64	$ 412,402.64
		$ 99,135.00		$ 3,965.66	$ 103,100.66
		$ 275,330.00		$ 6,500.00	$ 281,830.00
Total Controllable Expenses			$ 771,006.00	$ 26,327.30	$ 797,333.30
Income Before Occupancy costs	ancy Costs,		$ 320,477.00		$ 348,723.43
Interest, Depreciation, and Income Taxes
Occupancy Costs		$ 75,230.00		$ 2,000.00	$ 77,230.00
Interest		$ 25,600.00			$ 25,600.00
Depreciation		$ 79,099.00			$ 79,099.00
Total			$ 179,929.00		$ 181,929.00
Restaurant Profit			$ 140,548.00		$ 166,794.43
Fixed Costs
Salaries and Wages
Employee Benefits
Other Controllable Expenses
Occupancy Costs
Interest
Depreciation
Total Fixed Costs
Variable Costs
Cost of Food
Cost of Beveerages
Salaries and Wages
Employee Benefits
Total Variable Costs
Variable Rate
VR=
VR=
VR=
Contribution Rate
CR = 1 - VR
CR=
CR =
Break Even
BE=	FC
	CR
BE=
BE=
				Exercise 3.1 The budgeted income statement for Barnabys Hideaway is produced on your Excel spreadsheet. Assume that the following constitute the fixed and vari- able costs for the upcoming year: Fixed Costs for the Upcoming Year 1. 40percentofsalariesandwages 2. Employeebenefits40percentofemployeebenefits3. Othercontrollableexpenses 4. Occupancycosts 5. Interestexpense 6. Depreciation Variable Costs for the Upcoming Year 1. Costoffood 2. Costofbeverages 3. 60percentofsalariesandwages 4. Employeebenefits60percentofemployeebenefits Using the Excel spreadsheet: Calculate total fixed costs for the upcoming year. Calculate total variable costs for the upcomin gyear. Calculate the variablerate for the upcoming year. Calculate the break-evenpoint for Barnabys Hideaway fort the upcoming year. Assuming that the average contribution margin per unit is $14.50, cal- culate the number of customers necessary to break even.