Pamela Cantu operates a school foodservice department in a small, rural community. She feeds approximately 1,300 students per day in three different locations. She receives an average of $1.28 in revenues per meal. Her budget, set at the beginning of the school year by the superintendent, is developed in such a way that a small amount is to be reserved for future equipment purchases and dining-room renovation. These funds are available, however, only if Pamela meets her budget. She hopes to use this years reserve (profit) to buy a $29,000 refrigerated salad bar for the high school. Because it is the midpoint of her school year, help her determine her performance to budget thus far (fill in all blanks).

Item	Budget	Actual	% of Budget
Meals Served	300,000	149,800	49.9%
Revenue
Food Expense	$170,000	$84,961	49.9%
Labor Expense	125,000	63,752	51.0%
Other Expense	60,000	31,460	52.4%
Total Expenses	$ 355,000	180,173	153.3%
Reserve

Assuming that the year is 50 percent completed and Pamela continues doing what she is doing, is she likely to meet the reserve requirement and thus be able to purchase the salad bar by the end of the year? If not, what changes should she make over the next six months to ensure that she will have the $29,000 in reserve?

Answer: