In this task, you will need to:

1. Calculate variances
2. Indicate whether the variance is favourable or unfavourable.
3. Identify one positive and one negative trend in the sales figures.
4. Are there any significant variances in the sales figures that you should be concerned about? Explain what the results indicate and why you are/are not concerned about them
5. Are there significant variances in any of the expenses categories that you think should be investigated further? If yes, discuss which expenses and why you think they need investigation. If no, discuss why the variations do not warrant investigation.
6. Using the formula below calculate the following for both budgeted and actual.

formula = foodcost/foodsales *100

• Food Cost Percentage
• Beverage cost percentage
• Beer cost percentages
• wine cost percentages.

7.Which expense category has the most funds allocated to it? Explain why it is important you manage costs in this category carefully.

8.make a professional one-page report* to Management informing about variances, possible reasons and what measures can be taken to improve the performance. Your suggestions may be based on following processes to inform management of the actual budget:

• Discussions with existing suppliers
• Evaluation of staffing and rostering requirements
• Evaluation of impact of potential roster changes
• Review of operating procedures
• Sourcing new suppliers