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Question 2 Bella International Food and Services Limited provides the following for the months of April & May 2020: April $ May $ Sales
Question 2 Bella International Food and Services Limited provides the following for the months of April & May 2020: April $ May $ Sales Revenue Sales revenue - food 318,400 341,600 Sales revenue - beverages 115,200 118,400 Total sales revenue 433,600 460,000 Operating Expenses Cost of sales - food 114,400 131,200 Cost of sales - beverage 26,880 31,840 Salaries and Wages Expense 121,600 136,000 Other operating expenses 123,360 131,200 Total operating expenses 386,240 430,240 Operating Income 47,360 29,760 Required: (Answers should be rounded to 2 decimal places) (a) Prepare a common-size vertical analysis income statement for 2 months. (b) Prepare a comparative horizontal analysis income statement for 2 months. (4 marks) (4 marks) (c) A total of 32,000 guests were served in April and 35,000 in May, calculate the average check, cost and operating income per guest in the statement. (5 marks) (d) Analyse the results from the above and give recommendations to the management. (14 marks)
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