Please assist in answering the four questions for Cas4 - Budgeting and Variance (Mikes lemonade stand). Link: https://www.chegg.com/homework-help/questions-and-answers/case-4-budgeting-variance-mike-selling-lemonade-lemonade-stand-name-mike-s-lemonade-past-s-q41375705

Case 4 - Budgeting and Variance Mike has been selling lemonade at his lemonade stand under the name 'Mike's Lemonade for the past few summers and has had tremendous success. As a matter of fact, kids are so "hooked" on his lemonade that he is now offering credit to those customers who have spent their allowance but need more of his product. His weekly budget is: 1007 Total Customers Cash paying customers Credit customers 20 Net Revenue Cash revenue Credit revenue $51.00 40.00 11.00 Expenses Salaries & wages Lemons Sugar Cups Equipment rental Total Operating Expenses $10.00 15.00 10.00 5.00 2.00 $42.00 Net Profit (Loss) $9.00 BUDGET NOTES: 'Salaries & wages' are comprised of Mike's salary Cash customers pay $0.50/cup and credit customers pay a 10% surcharge Lemons, sugar, and cups expenses are for 100 cups of lemonade - Equipment (pitcher, spoons, measuring cups) are rented from Mike's mother 1. Mike's Lemonade - Monthly Budget Mike plans to keep his lemonade stand open for the 3 summer months (total of 12 weeks) each year. For better planning, expand his weekly budget into a monthly (4 weeks) budget 2. Mike's Lemonade - Budget Variance Things go well for the first two months of operations. However, after the third month Mike finds that he is losing money badly, having to offset his losses from his personal savings account (previous months' profits). He speaks with his father, a CPA at an accounting firm, who recommends that Mike run a budget variance report. Mike asks you to complete the following table (note - the budget numbers should come from your monthly budget in #1): Budget Actual Variance, 240 180 60 Total Customers Cash paying customers Credit customers AB Net Revenue Cash revenue Credit revenue $123.00 90.00 33.00 Expenses Salaries & wages Lemons Sugar Cups Equipment rental Total Operating Expenses $40.00 48.00 28.00 12.00 8.00 $136.00 Net Profit (Loss) (13.00) Clearly there is a problem, so Mike begins to investigate. He talks to his customers and finds that many were away on vacation some or part of his third month of operations. He also talks to his distributors (the grocery store manager) and finds that the price of lemons and sugar are likely to increase this year due to drought and freezing. Mike estimates that the cost of his supplies will increase by 3% next year. Mike talks to his father again, who recommends that Mike project monthly budgets for next year including predictions for drops in volume and increases in costs. He also suggests that Mike may want to consider raising the price of his lemonade, but must take into account that price affects volume. 3. Mike's Lemonade Projected Monthly Budget Develop a monthly budget for each of the 3 summer months (June, July, and August) for next year. Make and note any assumptions under 'Budget Notes', including from the information that Mike learned from his investigation. Total Customers Cash paying customers Credit customers Net Revenue Cash revenue Credit revenue Expenses Salaries & wages Lemons Sugar Cups Equipment rental Total Operating Expenses Net Profit (Loss) BUDGET NOTES: 4. What could Mike do to improve his net profit? Case 4 - Budgeting and Variance Mike has been selling lemonade at his lemonade stand under the name 'Mike's Lemonade for the past few summers and has had tremendous success. As a matter of fact, kids are so "hooked" on his lemonade that he is now offering credit to those customers who have spent their allowance but need more of his product. His weekly budget is: 1007 Total Customers Cash paying customers Credit customers 20 Net Revenue Cash revenue Credit revenue $51.00 40.00 11.00 Expenses Salaries & wages Lemons Sugar Cups Equipment rental Total Operating Expenses $10.00 15.00 10.00 5.00 2.00 $42.00 Net Profit (Loss) $9.00 BUDGET NOTES: 'Salaries & wages' are comprised of Mike's salary Cash customers pay $0.50/cup and credit customers pay a 10% surcharge Lemons, sugar, and cups expenses are for 100 cups of lemonade - Equipment (pitcher, spoons, measuring cups) are rented from Mike's mother 1. Mike's Lemonade - Monthly Budget Mike plans to keep his lemonade stand open for the 3 summer months (total of 12 weeks) each year. For better planning, expand his weekly budget into a monthly (4 weeks) budget 2. Mike's Lemonade - Budget Variance Things go well for the first two months of operations. However, after the third month Mike finds that he is losing money badly, having to offset his losses from his personal savings account (previous months' profits). He speaks with his father, a CPA at an accounting firm, who recommends that Mike run a budget variance report. Mike asks you to complete the following table (note - the budget numbers should come from your monthly budget in #1): Budget Actual Variance, 240 180 60 Total Customers Cash paying customers Credit customers AB Net Revenue Cash revenue Credit revenue $123.00 90.00 33.00 Expenses Salaries & wages Lemons Sugar Cups Equipment rental Total Operating Expenses $40.00 48.00 28.00 12.00 8.00 $136.00 Net Profit (Loss) (13.00) Clearly there is a problem, so Mike begins to investigate. He talks to his customers and finds that many were away on vacation some or part of his third month of operations. He also talks to his distributors (the grocery store manager) and finds that the price of lemons and sugar are likely to increase this year due to drought and freezing. Mike estimates that the cost of his supplies will increase by 3% next year. Mike talks to his father again, who recommends that Mike project monthly budgets for next year including predictions for drops in volume and increases in costs. He also suggests that Mike may want to consider raising the price of his lemonade, but must take into account that price affects volume. 3. Mike's Lemonade Projected Monthly Budget Develop a monthly budget for each of the 3 summer months (June, July, and August) for next year. Make and note any assumptions under 'Budget Notes', including from the information that Mike learned from his investigation. Total Customers Cash paying customers Credit customers Net Revenue Cash revenue Credit revenue Expenses Salaries & wages Lemons Sugar Cups Equipment rental Total Operating Expenses Net Profit (Loss) BUDGET NOTES: 4. What could Mike do to improve his net profit