Task 3: Prepare a management report
Prepare a short report to management outlining the following information.
Positive and negative budget variations indicated in monthly and quarter analysis
reports and profit and loss statement that are significant enough to affect the operation
of the bistro and its profitability.
Trends identified in the trend analysis report that have the potential to affect the
bistro's profitability in the immediate future.
Possible reasons for the positive or negative variations and trends.
Any recent actions that have been taken or changes to operational procedures as a
result of trends and deviations.
Base the report on the following information.
Profit and loss statement
Trend analysis report
April, May and June comparative analysis reports
Case study information provided in Assessments C and D
Your responses to questions in Assessments C and D
The report should present information in a clear, concise and easy to understand manner so
it supports good decision-making processes.
Save your completed management report as
Assessment E_Management report.
..ooo amaysim 4G 11:54 PM 10 Assessment D_Bistro May... Comparative analysis report Bistro departmental budget - May May Budget Actual Variance Variance $ $ % Revenue Food sales 114,975 112,676 (2,299) (2) Beverage sales 91,875 90,497 (1,378) (1.5) Total sales 206,850 203,173 (3,677) (1.8) Cost of sales Food purchases 42,194 45,864 (3,671) (8.7 ) Beverage purchases 26,775 29,399 (2,624 (9.8 Total cost of sales 68,969 75,265 (6,294) (9.1) Gross profit 137,881 127,908 (9,973) (7.2) Expenses Advertising/Promotions 962 981 (19) (2) Cleaning contractor 1,490 1,490 0 Small equipment replacement 333 288 46 13.7 Laundry 245 237 8 3.2 Maintenance 1,493 1,329 164 11.0 Printing & stationery 160 114 46 29.0 Training & seminars 396 713 317 (80.0 Wages & on-costs 89,345 103,283 (13,938 (15.6) Utilities 3,494 3,456 38 1.1 Total expenses 97,766 111,891 (14,125) (14.4) NET PROFIT 40,115 16,017 (24,098) (60.1) Bistro purchasing budget - May May Budget Actual Variance Variance $ $ $ % Food purchases Fruit & vegetables 5,063 5,970 906 17.9 Dairy products 8,439 8,177 (262 (3.1) Meat & poultry 14,768 17,662 2,895 19.6 Fish & seafood 4,219 4,506 287 6.8 Dry goods - food 7,595 7,511 (84) (1.1) Dry goods - other 2, 110 2,038 (72) (3.4) Total food purchases 42,194 45,864 3,670 8.7 Beverage purchases Wine 4,820 5,359 540 (11.2) Spirits 4,016 4,185 169 (4.2) Beer, ciders - packaged 5,891 6,762 872 (14.8) Beer - keg 4,552 5,162 610 (13.4) Soft drinks, juices - packaged 3,079 3,230 151 (4.9) Post mix 4,418 4,701 283 (6.4) Total beverage purchases 26,776 29,399 2,625 (9.8) Total cost of sales 68,970 75,263 6,295 (9.1) Food cost % 36.7% 40.7% Beverage cost % 29.1% 32.5% Cost of sales % 37% 33.3%..ooo amaysim 4G 11:49 PM 10 Assessment C_Budgets_V1... SITXFINO03 MANAGE FINANCES WITHIN A BUDGET Jackson Hotel operational budget - June quarter April May June June quarter $ Revenue Food sales 116,800 127,750 120,450 365,000 Beverage sales 240,000 247,500 262,500 750,000 Tab commission 49,300 47,850 47,850 145,000 Total revenue 406,100 423,100 430,800 1,260,000 Cost of sales Food purchases 48,180 49,640 48,180 146,000 Beverage purchases 84,000 86,625 91,875 262,500 Total cost of sales 132,180 136,265 140,055 408,500 Gross profit 273,920 286,835 290,745 851,500 Expenses Accounting 2,700 3,000 4,300 10,000 Advertising/promotions 3,900 4,810 4,290 13,000 Bank charges 7,582 7,359 7,359 22,300 Cleaning contractor 7,451 7,451 7,451 22,354 Commission credit card 767 767 767 2,300 Small equipment replacement 833 833 833 2,500 Insurance 1,833 1,833 1,833 5,500 Laundry 347 357 347 1,050 Legal fees 1,280 360 360 2,000 Licence fees & permits 983 983 983 2,950 Motor vehicle expenses 500 500 500 1,500 Maintenance 4,224 4,352 4,224 12,800 Printing & stationery 800 30 800 2,400 Rubbish removal 500 500 500 1,500 Communication 2,000 2,000 2,000 6,000 Training & development 1,190 1,155 1,155 3,500 Wages &on-costs 193,050 198,900 193,050 585,000 Utilities 12,000 11,647 11,647 35,295 Total expenses 241,941 247,608 242,400 731,449 NET PROFIT 31,979 39,227 48,345 120,051 Didasko Digital 2016 www.didasko.com SITXFINO03 MANAGE FINANCES WITHIN A BUDGET Comparative analysis report Bistro departmental budget - April Don't forget to round your figures up or down to the nearest whole number...ooo amaysim 4G 11:54 PM 10 Assessment D_Bistro May... Bistro labour budget - June quarter Labour April May June June Quarter expenses Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Varianc $ $ $ S $ % % Total salaries 9,780 9,780 0 9,780 9,780 0 9,780 9,780 29,340 29,340 Total front of house 45,053 52,171 (15.8) 47,382 55,105 (16.3) 44,804 51,260 (14.4) 137,239 158,537 (15. staff Total kitchen 21,864 26,237 (20.0) 22,610 27,332 (20.9) 21,770 26,232 (20.5) 66,244 79,801 (20. staff Total wages & 76,697 88,188 (15.0) 79,772 92,217 (15.6) 76,354 87,272 (14.3) 232,823 267,678 (15.1 salaries On-costs 9,204 10,583 9,573 11,066 9,162 10,473 27,939 32,121 (15.0 Total labour 85,901 98,771 (15.0) 89,345 103,283 (15.6) 85,516 97,745 (14.3) 260,762 299,799 (15 expenses Percentage of total 44.19 50.82 43.19 49.93 45.06 51.50 14.47 16.5 sales Bistro staffing levels No. staff Monday Tuesday Wednesday Thursday Friday Saturday Sunday Front house Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd Supervisor 2 1 1 2 2 2 2 2 2 2 2 Food Attendant 3 2 2 2 12 FT Food Attendant 10 2 3 8 Cas Bar Attendant 3 2 2 2 2 2 3 2 2 3 2 2 FT Bar Attendant 1 0 1 2 2 Cas Bus person Cas 2 Total R 10 16 13 19 15 16 13 rostered Kitchen Chef 1 1 1 1 1 1 Sous chef 1 1 1 1 1 1 Cooks FT 3 2 2 2 2 2 2 2 2 2 2 3 3 3 3 Apprentices A 3 3 FT Kitchen 2 hand Cas Total 5 5 5 9 10 rostered..ooo amaysim 4G 11:49 PM 10 A Assessment C_Budgets_V1... Printing & stationery SUU SUU 2,4UU Rubbish removal 500 500 500 1,500 Communication 2,000 2,000 2,000 6,000 Training & development 1,190 1,155 1,155 3,500 Wages &on-costs 193,050 198,900 193,050 585,000 Utilities 12,000 11,647 11,647 35,295 Total expenses 241,941 247,608 242,400 731,449 NET PROFIT 31,979 39,227 48,345 120,051 Didasko Digital 2016 www.didasko.com SITXFINO03 MANAGE FINANCES WITHIN A BUDGET Comparative analysis report Bistro departmental budget - April Don't forget to round your figures up or down to the nearest whole number. April Favourable / May June Unfavourable quarter Budget Actual Variance Variance Budget Budget $ $ $ $ $ Revenue Food sales 105, 120 119,837 14,716 14 favourable 114,975 328,500 Beverage sales 89,250 96,390 7,140 8 favourable 91,875 262,500 Total sales 194,370 216,226 21,857 11.2 favourable 206,850 591,000 Cost of sales Food purchases 40,953 45,048 4095 10 unfavourable 42,194 124,100 Beverage purchases 27,563 30,043 2,481 (9) favourable 26,775 78,750 Total cost of sales 68,516 75,091 6,576 9.6 favourable 68,969 202,850 Gross profit 125,855 141,135 15280 12.1 favourable 137,881 388,150 Expenses Advertising/Promotions 780 624 (156) (20) favourable 962 2,600 Cleaning contractor 1,490 1,490 0 favourable- 1,490 4,471 Small equipment replacement 333 393 60 18 unfavourable 333 1,000 Laundry 245 232 (13) (5.5) favourable 245.00 735 Maintenance 1,493 1,262 (231 (15.5)| favourable 1,493.33 4,480 Printing & stationery 160 195 35 22 unfavourable 160.00 480 Training & seminars 408 653 245 60 unfavourable 396 1,200 Wages & on-costs 85,901 98,771 12,870 15 unfavourable 89,345 260,763 Utilities 3,441 3,235 206 6) favourable 3,494 10,589 Total expenses 94,251 106,855 12604 13.4 unfavourable 97,919 285,857 NET PROFIT 31,604 34,281 2677 8.5 favourable 40,115 102,293 3 Didasko Digital 2016 www.didasko.com..ooo amaysim 4G 11:57 PM 10 Assessment E_Bistro repor... Bistro profit and loss statement - June quarter Monthly actual results June quarter actual results May June July Budget Actual Variance Variance $ $ $ $ % Revenue Food sales 119.837 112,676 110,356 328,500 342,869 14369 4.2 Beverage sales 96,390 90,497 84,630 262,500 271,517 9017 3.3 Total sales 216,227 203,172 194,986 591,000 614,385 23385 3.8 Cost of sales Food purchases 45,048 45,865 42,174 124,100 133, 8987 6.7 Beverage purchases 30,043 29,399 23,827 78,750 83,269 4519 5.4 Total cost of sales 75,091 75,264 66,001 202,850 216,356 13506 6.2 Gross profit 141,135 127,909 128,986 388,150 398,029 9879 2.5 Expenses Advertising/Promotions 624 981 884 2,600 2,489 (111) 4.3 Cleaning contractor 1,490 1,490 1,490 4,471 4,471 Small equipment replacement 393 288 372 ,000 1.053 53 (5.3) Laundry 232 237 283 735 751 16 (2.2) Maintenance 1,262 1,329 1.314 4,480 3,905 (575 12.8 Printing & stationery 195 114 145 480 454 (26 5.4 Training & seminars 653 713 519 1,200 1,684 684 (57) Wages & on-costs 98,771 103,283 97,745 260,762 299,799 39,037 (15) Utilities 3,235 3,456 4,190 10.588.50 10,881 292 (2.8) Total expenses 106,855 111,890 106,942 285,857 325,687 39830 12.2 NET PROFIT 34,281 16,018 22,044 102,293 72,343 (29950) (41) Trend analysis report - June quarter Monthly actual results Comparison to previous June quarters June quarter June quarter June quarter Variance May June July 200X to Variance current 200X 20XX current 20XX to 200X V% V% V% Revenue Food sales 14.0 (2) 1.8 328,500 286,781 256,955 12.7 10.4 Beverage sales 8.0 (1.5) 4 262,500 228,638 208,975 12.9 8.61 Total sales 11.2 (1.8) 2.7 591,000 515,418 465,930 12.8 9.6 Cost of Sales Food purchases (10.0% (8.7) (6.2) 122,859 106,273 96,602 13.5 9.1 Beverage purchases (9) (9.8) 2.4 78.750 66,22 60,732 15.9 8.3 Total cost of sales (9.6) (9.1) (2.9) 201,609 172,502 157,334 14.4 8.8 Gross profit 12.1 (7.2) (2.7) 389,391 342,916 308,596 11.9 10 Expenses Advertising/Promotions 20 (2.) (3) 2,600 2,275 2,025 12.5 11 Cleaning contractor 4,471 3,845 3,230 14 16 Small equipment replacement 18) 13.7 (11.6) ,000 890 829 11 6.9 Laundry 5.5 3.2 (15.4) 735 642 581 12.6 9.6 Maintenance 15.5 11 12 4,480 3,754 3,274 16.2 12.8 Printing & stationery (22) 29 9.2 480 453 425 5.6 6.1 Training & seminars (60) (80) (31.0) 1,200 1,062 1,017 11.5 4.2 Wages & on-costs (15) (15.6) (14.3) 260,762 219,822 200,698 15.7 8.7 Utilities 6 14.7 10,589 8,661 7,674 18.2 11.4 Total expenses 3.4 14.4 (13.8) 286,316 241,405 219,752 15.7 9.0 NET PROFIT 8.5 (60.1) (30.4) 103,075 101,511 88,844 1.5% 12.5 Variance formula To calculate variance between two time periods. (Current year - Previous year) / Current year x 100 = variance% Example 1 (June quarter current year - June quarter 200X) / June quarter current year x 100 = variance between the two periods Food sale variance = (328,500 - 286,781) / 328,500 x 100 = 12.7% increase in food sales revenue Example 2 (June quarter 200X - June quarter 20XX) / June quarter 200X x 100 = variance between the two periods Cleaning contractor variance = (3,845 - 3,230) / 3,845 x 100 = 16.0% increase in cleaning contractor expenses
