Please explain the workings of this analysis as best as possible.

Level 3 Analysis - explain how the following analysis was created and analyze it or potential issues raised by the results. McPeters, Inc. Variance Analysis of Restaurant #113 Volume, Efficiency, and Price Variances Price % of Input Efficiency % of Volume Variance Budget Budget Variance Budget Flex Budget Variance % of Budget Static Budget Total % of Variance Budget Item Actual Statistics: + Meals served Average Price per Meal Average pounds per meal Average food costs per pound Person-hours per meal Person-hours Average personal costs Kilowatt hours per meal Kilowatt hours Utility rate per kilowatt hour 22,000 3.9723 0.8636 2.6268 0.13 50 2.970 7.50 0.32 7,040 0.1200 22,000 4.2475 0.8636 2.5375 0.1350 2.970 7.25 0.32 7,040 0.1200 22,000+ 4.2475 0.7975 2.5375 0.1250 2,750 7.25 0.35 7,700 20,000 4.2475 0.7975 2.5375 0.1250 2,500 7.25 0.35 7,000 0.1200 0.1200 Formulae: AO*AR*AP AO*AR* BP AO*BR BP BO BR BP Reveries: Food sales $ 87,390 $ (6,055) (7.13) $ 93,445 $ - - $ 93,445 $ 8,495 10.00 $ 84,950 $ 2,440 2.87 (500) (20.00) 1,697 4.19 3,692 500 20.00 (9,436) (23.32) 9.12 4,047 10.00 Expenses: Advertising Food costs Franchise fee Personnel costs Rent Supervision Utilities Total Expenses 743 4.10 1.595 8.80 1.813 10.00 2,000 49,910 3,000 22.275 1,000 3,500 845 82,529 (4.150) (22.90) 2,500 48,213 3,000 21,533 1,000 3,500 845 80,590 2,500 44,520 3,000 19,938 1,000 3,500 924 75,382 $ 2,500 40,473 3,000 18.125 1,000 3,500 840 - 10.00 (79 (9.43) (5,208) (7.50) 84 5,944 (5) $(13,091) (0.57) (18.85) $ 1,940 2.79 $ 8.56 $ 69,438 Net Income $ 4,861 $ (4,115) (26.53) $ 12,855 $ (5,208) (33.57) $ 18.063 $ 14,439 93.08 $ 15,512 $ (10,651) (68.66) Level 3 Analysis - explain how the following analysis was created and analyze it or potential issues raised by the results. McPeters, Inc. Variance Analysis of Restaurant #113 Volume, Efficiency, and Price Variances Price % of Input Efficiency % of Volume Variance Budget Budget Variance Budget Flex Budget Variance % of Budget Static Budget Total % of Variance Budget Item Actual Statistics: + Meals served Average Price per Meal Average pounds per meal Average food costs per pound Person-hours per meal Person-hours Average personal costs Kilowatt hours per meal Kilowatt hours Utility rate per kilowatt hour 22,000 3.9723 0.8636 2.6268 0.13 50 2.970 7.50 0.32 7,040 0.1200 22,000 4.2475 0.8636 2.5375 0.1350 2.970 7.25 0.32 7,040 0.1200 22,000+ 4.2475 0.7975 2.5375 0.1250 2,750 7.25 0.35 7,700 20,000 4.2475 0.7975 2.5375 0.1250 2,500 7.25 0.35 7,000 0.1200 0.1200 Formulae: AO*AR*AP AO*AR* BP AO*BR BP BO BR BP Reveries: Food sales $ 87,390 $ (6,055) (7.13) $ 93,445 $ - - $ 93,445 $ 8,495 10.00 $ 84,950 $ 2,440 2.87 (500) (20.00) 1,697 4.19 3,692 500 20.00 (9,436) (23.32) 9.12 4,047 10.00 Expenses: Advertising Food costs Franchise fee Personnel costs Rent Supervision Utilities Total Expenses 743 4.10 1.595 8.80 1.813 10.00 2,000 49,910 3,000 22.275 1,000 3,500 845 82,529 (4.150) (22.90) 2,500 48,213 3,000 21,533 1,000 3,500 845 80,590 2,500 44,520 3,000 19,938 1,000 3,500 924 75,382 $ 2,500 40,473 3,000 18.125 1,000 3,500 840 - 10.00 (79 (9.43) (5,208) (7.50) 84 5,944 (5) $(13,091) (0.57) (18.85) $ 1,940 2.79 $ 8.56 $ 69,438 Net Income $ 4,861 $ (4,115) (26.53) $ 12,855 $ (5,208) (33.57) $ 18.063 $ 14,439 93.08 $ 15,512 $ (10,651) (68.66)