Round to 2 decimal places and show work calculations

1. V.K. Sing is the manager of the Knight Kap restaurant . V.K. is preparing his budget for next year and would like to estimate his beverage revenue and expense. V.K. kept careful sales and cost records from last year and these are listed below:

Sales & Cost Records
	Guests Served	Selling Price	Beverage Cost
Beer	3,500	$7.75	$1.70
Wine	4,800	$11.00	$3.80
Spirits	2,500	$12.00	$1.80

V. K. has made the following assumptions about next year:

• The cost he will pay for alcoholic beverages will increase by 2% in all of the beverage categories
• V.K. will increase the selling price of all alcoholic beverages by 5%
• The number of guests served will increase by 2% for beer, 2% for wine, and 3% for spirits

Assist V.K. in preparing next years beverage revenue and expense budget, calculate the following for each of his 3 beverage types: forecasted total beverage revenue, forecasted total beverage cost, and forecasted beverage cost % (4 points).

Projected Changes (Percentage Increases or Decreases)
	Guests Served	Selling Price	Beverage Cost
Beer
Wine
Spirits

Forecasted Beverage Revenue and Expense Forecast: Knight Kap
	Guests Served	Selling Price	Beverage Cost	Total Beverage Revenue	Total Beverage Cost	Beverage Cost %
Beer
Wine
Spirits
Total