It is now October201x (the first month of the secondquarter) is over and it is time to start checking actual income and expenditure against the budget. The owners have asked you to prepare a brief report on the performance of the first month of the quarter. They have also asked you to investigate appropriate options for more effective management of deviations. Below is a copy of the actual Profit & Loss (P&L) statement for October 2013 Review the statement and complete the following tasks. PEL Statement for October 2017 Details October Revenue Food Sales 78,610 Beverage Sales 61,440 Function Sales 97,500 Total Revenue 237,550 Operating Expenses Food Cost 47,623 Beverage Cost 24,982 Marketing 1,300 Rent 18,000 Telephones 440 Miscellaneous 1,399 Utilities 3,561 Wages - Base Salary 74,160 Superannuation 7,416 Total Operating Expenses 178,881 Net Profit or loss 58,669 X of Budgeted Revenue 24.70% Part A 1. Compare the actual figures in the table above, against the budget you have prepared the month of October 201X. 2. Calculate at least 3 significant variances between the actual and budgeted figures for October using the Budget Variance Report below. 3. Based on the outcome from the Budget Variance Report, prepare a written report to the owners outining the favourable and non-favourable aspects, including any reasons for the variance. 4. Include in your report, recommendations for measures to address the budget variance issues, including Renegotiating prices and credit terms with eseisting suppliers Sourcing new suppliers Budget Variance Report October 2017 Budget Actual Variances Variance % Details Revenue Food Sales Beverage Sales Function Sales Total Revenue Operating Expenses Food Cost Beverage Cost Marketing Rent Telephones Miscellaneous Utilities Wages - Base Salary Superannuation Total Operating Expenses Net Profit or loss % of Budgeted Revenue It is now October201x (the first month of the secondquarter) is over and it is time to start checking actual income and expenditure against the budget. The owners have asked you to prepare a brief report on the performance of the first month of the quarter. They have also asked you to investigate appropriate options for more effective management of deviations. Below is a copy of the actual Profit & Loss (P&L) statement for October 2013 Review the statement and complete the following tasks. PEL Statement for October 2017 Details October Revenue Food Sales 78,610 Beverage Sales 61,440 Function Sales 97,500 Total Revenue 237,550 Operating Expenses Food Cost 47,623 Beverage Cost 24,982 Marketing 1,300 Rent 18,000 Telephones 440 Miscellaneous 1,399 Utilities 3,561 Wages - Base Salary 74,160 Superannuation 7,416 Total Operating Expenses 178,881 Net Profit or loss 58,669 X of Budgeted Revenue 24.70% Part A 1. Compare the actual figures in the table above, against the budget you have prepared the month of October 201X. 2. Calculate at least 3 significant variances between the actual and budgeted figures for October using the Budget Variance Report below. 3. Based on the outcome from the Budget Variance Report, prepare a written report to the owners outining the favourable and non-favourable aspects, including any reasons for the variance. 4. Include in your report, recommendations for measures to address the budget variance issues, including Renegotiating prices and credit terms with eseisting suppliers Sourcing new suppliers Budget Variance Report October 2017 Budget Actual Variances Variance % Details Revenue Food Sales Beverage Sales Function Sales Total Revenue Operating Expenses Food Cost Beverage Cost Marketing Rent Telephones Miscellaneous Utilities Wages - Base Salary Superannuation Total Operating Expenses Net Profit or loss % of Budgeted Revenue