Hospitality Cost Controls:

complete the following working paper to separate costs into their variable and fixed amounts. compute IBIT and the variable cost percentage

Problem 8 Complete the following working paper to separate costs into their variable and fixed amounts. Compute IBIT and the variable cost percentage. Forecasted Sales $150,000 Budgeted Expense Type TC VC FC Comments Cost of food sold V 45,000 Payroll & related SV 42,000 F=$7,000 Guest supplies 2,200 Operating supplies 5,100 Utilities 7,000 F=$5,000 Other variable costs 6,200 Other fixed costs 9,000 Other SV costs F=$2,000 Total expenses $123,500 $ IBIT = $ VC%= 7,000