JJ's Bistro is located in Jackson's hotel. It seats 210 people and is open for lunch and dinner, seven days a week. The hotel promotes a family environment and has a playroom for younger children and an activity centre for pre-teens containing electronic and other games. These glass-walled play areas are within view of customers seated in the rear section of the bistro. The following events took place during the May budget period. Prices for meat, fruit and vegetables have increased as a result of recent drought in some regions and floods or storms in others. Prices for many wines have fallen due to a glut in the market. Beer prices have risen slightly, again due to the drought leading to shortages of ingredients and an increase in government taxes. Most utility companies increased prices by 7% at the start of May. The local police started a blitz on drink driving in the middle of May with increased police presence in local suburbs and roadside testing of drivers. In-house training was provided to key food and beverage staff in April by a coffee supplier. The aim is to increase sales and the quality of coffee served. The training was free of charge as part of a new preferred supplier contract with the coffee supplier. Revenue Food sales Beverage sales Total sales Cost of sales Food purchases Beverage purchases Total cost of sales Gross profit Bistro departmental budget - May May Budget $ Actual $ Variance Variance $ % 114,975 112,676 -2,299 91,875 90,497 -1,378 206,850 203,173 -3,677 -2 -1.5 -1.8 42,194 45,864 -3,671 -8.7 26,775 29,399 -2,624 -9.8 68,969 75,265 -6,294 -9.1 137,881 127,908 -9,973 -7.2 Expenses Advertising/Promotions 962 981 -19 -2 Cleaning contractor 1,490 1,490 0 Small equipment replacement 333 288 46 13.7 Laundry 245 237 8 3.2 Maintenance 1,493 1,329 164 11 Printing & stationery 160 114 46 29 Training & seminars 396 713 -317 -80 Wages & on-costs Utilities Total expenses NET PROFIT 89,345 103,283 -13,938 -15.6 3,494 3,456 38 1.1 97,766 111,891 -14,125 -14.4 40,115 16,017 -24,098 -60.1 Go to your Course files folder and open Assessment D_Bistro May budgets. Evaluate the budget outcomes and their impact on the operation and financial goals of the bistro. Answer all questions based on the outcomes in the comparative analysis report, Bistro purchasing budget - May and the case study information. Q1: Discuss how the outcomes food and beverage sales and costs of sales indicated in the May comparative analysis report impact the bistro area and the business overall. Consider the types of deviation (positive or negative) and size of the deviations in food, beverage and total sales and cost of sales categories.