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Problem 12 Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next year's budget. She wants to examine three different

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Problem 12 Barbara Collins is the manager of Shives, a fine dining restaurant, and is preparing next year's budget. She wants to examine three different levels of sales as follows: $700,000, $1,000,000, and $1,300,000. The following information upon which to make the calculations is provided. Food cost percentage: 45 percent Labor: Variable: 23 percent Fixed: $80,000 Other operating expenses: 8 percent Fixed charges: $100,000 Income taxes: 30 percent of pretax income 532 Chapter 10 Required: 1. Prepare the condensed operating budget for Shives at the three levels of sales indi- cated above. 2. Comment briefly about the impact of different levels of sales on the restaurant's profits. Problem 13 TAS HLI. 1

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