Ms Ruth Boaz owns and operates a restaurant (RB Restaurant) located in Melbourne CBD. Prior to starting her own business, Ms Boaz has accumulated rich education and work experience. She has completed a diploma in Hospitality and Culinary Arts. She also holds a Bachelor's degree in restaurant management with many years of experience working in various restaurants as a chef and assistant manager. RB restaurant began operations in mid-2019. Ms Boaz has performed a number of tasks to bring her business into operation by creating and developing a menu, and conducting effective marketing activity to kick start the business. The restaurant is family owned and her siblings hold some administrative roles. She also hired few casual employees that are rostered to work some days during normal operating hours of the business. The business is conveniently located near work places and shops where many people frequently visit for shopping and to dine. The business experienced an inspiring start and things went really well. Diners loved the quality of food served by the restaurant. RB Restaurant has prepared initial budget amounts to guide its operations during 2019. Monthly and annual budgets are prepared based on the following estimates.

cost item amount period cost behavior

kitchen equipment and rent 6200 month fixed

professional services 4600 two months fixed

insurance 2000 two months fixed

licenses 400 month fixed

labor costs 7340 month Mixed(50% VC)

utilities 1200 month Mixed(60% VC)

inventory 19700 month variable

miscellaneous expense 800 month Mixed(40% VC

RB Restaurant has presented budget data for July 2019 in the table shown below. There are various types of food items under each type of food category (or group). The price per dish is an average for each food category. Also, variable cost per dish represents average cost for each food category. Detailed information of budgeted volume, price and cost for each menu category are given in the following table.

description salads(S) side dishes(SD) legumes(L) meat(M)

sales volume(in dishes) 280 390 360 500

menu price per dish 15 18 20 26

variable cost per dish 10 15 16 20

1. Prepare contribution approach income statement for RB Restaurant and determine the total budgeted net profit for the second-half of year 2019. The income statement should contain separate columns for each type and present the total in a separate column. Assume that fixed cost is incurred for all food items prepared by RB Restaurant and has to be included in the total column only. Do not spread fixed cost to the food items in the menu.

2. How many serves (or dishes) of each category (or menu item) must be sold from July to December of 2019 in order to breakeven? Assume sales-mix remains constant throughout the period.