Question
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
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
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