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management would like to reduce the food cost by 2% next year. what would be the projected food cost amount if sales dont change? Local

management would like to reduce the food cost by 2% next year. what would be the projected food cost amount if sales dont change?

Local bistro

Income statement

As at Jun 30 2020

Sales

food 125,195

Beverage 45,272

Total sales -

Cost sales

food 49,914

beverage 23,796

Total cost of sales -

gross profit -

Controllable Expense

Salaries and wages 42,246

employee benefit 5,460

other controllable expense 24,852

total controllable expense -

interest, depreciation

occupancy 43,490

interest 4,381

depreciation 29,929

Operating profit/loss -

Answer-

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