Please help me understand how to find total forecast sales revenue for food and beverages. last two pictures are the information to help complete the problem
1. As a step in preparation of the 4C Company's Preliminary budget for Year 2008, calculate the forecast sales revenue based on Year 2007 actual results adjust as follows: dinner seat turnover figures will not change (see Group Case Study 2 #1). Note that lunch the guest count figure will increase as a result of the advertising plan (Group Case Study 2 #2). The average food check for lunch will increase by $0.60 while the average beverage check for lunch will increase by $0.20. For dinner, the average food check will increase by $0.55 while the average beverage check will increase by $0.40. No additional seat will be added in the restaurant, and operating days will remain the same. Calculate the total forecast sales revenue for food and beverages. 1.a. Calculate the average lunch and average dinner checks for food and beverage. Information from Group Case Study 1: Total Sales Revenue: $639,111 Food operations sales revenue: $458,602 Beverage operations sales revenue: $180,509 Guest count (covers): 66,612 Average check = $639,111 / 66,612 = $9.59 Pertinent info: 84-seat restaurant Operating days: open 52 weeks, 6 days a week for lunch, 5 days a week for dinner Average turnover: 1.5 for lunch; 1.25 for dinner Percent total sales revenue: lunch contributions 45%; dinner contributions 55% Total Beverage sales revenue: lunch 20%; dinner 80% Average Check per meal for both beverage and food: Average lunch beverage check=($180,509 x 0.20)/(84 seats x 1.5 x 6 days x 52 weeks) = $0.92 Average lunch food check=($458,602 x.45)/(84 seats x 1.5 x 6 days x 52 weeks) = $5.25 Average lunch check for both food and beverage combined = $0.92 + $5.25 = $6.17 Average dinner beverage check=($180,509 x 0.80)/(84 seats x 1.25 x 5 days x 52 wks) = $5.29 Average dinner food check = ($458,602 x .55) / (84 seats x 1.25 x 5 days x 52 wks) = $9.24 Average dinner check for both food and beverage combined = $5.29 + $9.24 = $14.53 2. Prepare calculations to show whether the $3,000 should be spent. Cost % Calculation Process Amount $ Additional Sales Revenue Food Sales revenue Beverage Sales revenue Total sales Revenue 15 guests x $5.25 x 6 x 52 15 guests x $0.92 x 6 x 52 $ 24,570 4,306 28,876 $ Cost of sales Food 39.5% 21.8% 39.5% x $24,570 21.8% x $4,306 Beverages Total Cost of Sales Gross Margin $ $ $ $ 9,705 939 10,644 18,232 $28,876 - $10,644 4 hours x $5.50 x 6 x 52 $ 6,864 Increase in expenses Wages Laundry China and tableware Glassware Other operating Costs Total VC% Total Variable Expenses Total Increase in expenses Operating Income Less: Cost of advertising Operating income (Increase) 2.6% 1.9% 0.3% 0.6% 5.4% 5.4% x $28,876 $6,864 + $1,559 $18,232 - $8,423 $ $ $ 1,559 8,423 9,809 3,000 $ $9,809 - $3,000 S 6.809 As per the above calculations, the $3,000 should indeed be spent on advertising. The increase in operating income is projected to be $6,809. 1. As a step in preparation of the 4C Company's Preliminary budget for Year 2008, calculate the forecast sales revenue based on Year 2007 actual results adjust as follows: dinner seat turnover figures will not change (see Group Case Study 2 #1). Note that lunch the guest count figure will increase as a result of the advertising plan (Group Case Study 2 #2). The average food check for lunch will increase by $0.60 while the average beverage check for lunch will increase by $0.20. For dinner, the average food check will increase by $0.55 while the average beverage check will increase by $0.40. No additional seat will be added in the restaurant, and operating days will remain the same. Calculate the total forecast sales revenue for food and beverages. 1.a. Calculate the average lunch and average dinner checks for food and beverage. Information from Group Case Study 1: Total Sales Revenue: $639,111 Food operations sales revenue: $458,602 Beverage operations sales revenue: $180,509 Guest count (covers): 66,612 Average check = $639,111 / 66,612 = $9.59 Pertinent info: 84-seat restaurant Operating days: open 52 weeks, 6 days a week for lunch, 5 days a week for dinner Average turnover: 1.5 for lunch; 1.25 for dinner Percent total sales revenue: lunch contributions 45%; dinner contributions 55% Total Beverage sales revenue: lunch 20%; dinner 80% Average Check per meal for both beverage and food: Average lunch beverage check=($180,509 x 0.20)/(84 seats x 1.5 x 6 days x 52 weeks) = $0.92 Average lunch food check=($458,602 x.45)/(84 seats x 1.5 x 6 days x 52 weeks) = $5.25 Average lunch check for both food and beverage combined = $0.92 + $5.25 = $6.17 Average dinner beverage check=($180,509 x 0.80)/(84 seats x 1.25 x 5 days x 52 wks) = $5.29 Average dinner food check = ($458,602 x .55) / (84 seats x 1.25 x 5 days x 52 wks) = $9.24 Average dinner check for both food and beverage combined = $5.29 + $9.24 = $14.53 2. Prepare calculations to show whether the $3,000 should be spent. Cost % Calculation Process Amount $ Additional Sales Revenue Food Sales revenue Beverage Sales revenue Total sales Revenue 15 guests x $5.25 x 6 x 52 15 guests x $0.92 x 6 x 52 $ 24,570 4,306 28,876 $ Cost of sales Food 39.5% 21.8% 39.5% x $24,570 21.8% x $4,306 Beverages Total Cost of Sales Gross Margin $ $ $ $ 9,705 939 10,644 18,232 $28,876 - $10,644 4 hours x $5.50 x 6 x 52 $ 6,864 Increase in expenses Wages Laundry China and tableware Glassware Other operating Costs Total VC% Total Variable Expenses Total Increase in expenses Operating Income Less: Cost of advertising Operating income (Increase) 2.6% 1.9% 0.3% 0.6% 5.4% 5.4% x $28,876 $6,864 + $1,559 $18,232 - $8,423 $ $ $ 1,559 8,423 9,809 3,000 $ $9,809 - $3,000 S 6.809 As per the above calculations, the $3,000 should indeed be spent on advertising. The increase in operating income is projected to be $6,809
