The Linton Club management is considering outsourcing the bar and caf meals. You have been asked to put together a budget for the Brasserie only, as it is the most popular eatery.

A summary of the budgeted costs have been listed below:

• The cost of goods sold (food purchases and beverages purchases) have been estimated at 65% of the June profit & loss actual figures
• The Linton Club has agreed to absorb management fees, courtesy bus, and security costs. These can be removed from the budget
• The following expenses have been reduced to $500 per month:
  • Advertising
  • Printing & stationery
• The following budgeted expenses need to be reduced:

• Cleaning materials
• Laundry & linen hire
• Utilities
• Musicians & entertainers
• Telephone

• Rent has been capped at $10,000 per month
• Wages are budgeted at 35% of June profit and loss
• Tax expense is budgeted at 30%

Given the number of unfavourable variances across these months, evaluate the expected sales and expenses. In the July budget worksheet, design a new budget for July. It is necessary to achieve a profit in your budget. In this budget, ensure you allow for tax expenses.