Mike Tackett, manager of the Troopers Caf, has asked for your assistance preparing the monthly budget for January 20X2. He provides you with the prior January actuals as follows:

	20X1	% of sales	Budget for 20X2
Sales	$ 200,000
Expenses:
Labor (F)	$ 30,000
Labor (V)	$ 20,000
Cost of Sales (V)	$ 60,000
Supplies (V)	$ 9,000
Energy (V)	$ 5,500		6,050
Promotion (V)	$ 3,000
Maintenance (F)	$ 4,500		4,725
Maintenance (V)	$ 4,000
Property Taxes (F)	$ 1,600
Depreciation (F)	$ 1,000		1,050
Rent (F)	$ 1,700
Insurance (F)	$ 1,300		1,365
Total Expenses	$ 141,600		153,755
Net Income	$ 58,400

Assume for 20X2 sales are expected to increase by 10%, fixed costs will increase by 5%, and variable costs will remain at the same percentage of sales as experienced in prior January.

a) Calculate the Percentage of sales for all Variable costs. (3 points)

b) Prepare the budget for January 20X2. (8 points)