REQUIRED 1. Identify each cost from the Franchise Profile as a variable or fixed cost and place in appropriate row on the Original Budget 2. Complete the calculations on the Original Budget. Note. The Operating Budget should equal $153.900 3. Prepare a Flexible Budget for Scenario 1. Assume Sales and Variable Costs increase by 10% and the Advertising Budget was incresed by $10,000. 4. Prepare a Flexible Budget for Scenario 1. Assume Sales and Variable Cost decrease by 20% Franchise Profile: Original Sales and Cost Data CATEGORY AMOUNT SALES ####### COSTS I Food Costs $810,000 Paper Costs $108,000 Crew Payroll $540,000 Crew Payroll Taxes $54,000 Manager Payroll and Payroll Taxes $108,000 Advertising $108,000 Promotions $13.500 Outside Services - Landscaping $27.000 Linens $5,400 Operating Supplies $27 000 Maintenance and Repairs $40.500 Utilities $81,000 Training and Travel $16 200 Cooking Oil Waste Removal $5,400 Rent and Fees $391,500 Legal and Accounting $8,100 Insurance $54,000 Taxes and Licenses $27.000 Depreciation $94,500 Interest Expense $27.000 TOTAL COSTS $2,546, 100 OPERATING PROFIT $153,900 Original Budget Flexible Budgets CATEGORY AMOUNT Scenario 1 Scenario 2 SALES 18833 YARIABLE COSTS: Total Variable Costs 30 10 to CONTRIBUTION HARGIN Contribution Margin ? 11111 100.02 10 IDIYO! to DIY 70! FIXED COSTS 0 Total Fired Costs 30 10 $0 OPERATING PROFIT Operating Profit 2 13:31 100.02 10 #DIV/0! $0 #DIV/0