Food revenues are $750,000; beverage revenues are $150000. There is a 1-percent variance

between standard and actual food costs and a 5-percent variance between standard and

actual beverage costs.

1. Which operation (food or beverage; likely has the most significant

control problem? Why?

2. How much higher would food profits have been if actual food costs were in line

with standard food costs?

3. How much higher would-beverage profits have been if actual beverage costs

were in line with standard beverage costs?

4. What is the total amount of profit lost because actual food and beverage costs

were higher?