PART D it is September and the budget is as follows: July July August August Bud - et Actuals Bud - et Actuals mcoem Accommodation 2940 3670 Food 1090 2040 Beverages 1680 1896 TOTAL REVENUE m 6510 7606 EXPENSES Overhead Stock 1,428 2,300 Lease 1.500 1,500 Repairslmaintenanoe 400 300 Advertising 200 200 200 200 Laundry 600 950 Wages 1,628 1 .450 Miscellaneous mm 600 400 TOTAL EXPEND. 6,556 7,100 __ +l- -46 506 Cash on hand: start 10,024 11,026 Cash on hand: end 10,024 11,028 9,978 11,534 You as the manager and the small order cook have agreed to speak to your fruit and vegetable supplier to see if there are any possibilities of reducing the cost of your purchases. You want to reduce your delivery from 4 days per week to twice a week and rather than telling them what fruit and vegetables you want, you are requesting them to select the best quality for the cheapest price, ie the cheapest on the day. Also as part of cost savings you have had to make the decision to move away from local suppliers of shelf items such as porridge, flour, herbs and spices, sugar, etc. Now that Costco has opened you have the option of buying in bulk. You have calculated that this will save you approximately $3, 000 - $4,000 per year. 1. Enter the above budget income and expenditure amounts for July and August to produce a suitabie report. 2. Draft the communication with the supplier outlining your request and ask them to provide you with the best possible pricing structure. You will also need to influence their decision by reminding them that the B&B wants to stay with local producers and their quality is the best. Your communication should be formatted professionally and written clearly and in a suitable language for the audience. Submit this communication to your assessor. As the manager you have been trying to cut costs in wages by doing the housekeeping yourself during the week and on Saturdays. While you have made savings you have run yourself into the ground and are exhausted. it has also meant that customer service has suered because you are running from the office to the cabins during the two to three hour cleaning window while customers wail. Sales have been up with accommodation running at 92% occupancy over the past four months. You want to bring the casual housekeeper back in for 7 days per week. This will add approx. $4000 to your monthly expenditure. 3. Draft a communication to Betsy regarding your evaluation of the budget how you are feeling, how in your effort to reduce expenditure, this has caused a slump in customer service, your recommendations for changes to the budget and the impact that the changes will have positive and negative. You will need to
