1. The manager of the Spartan Land Restaurant is developing the operating budget for next year using the following financial information from the current year:

 

a. What is the current year's budgeted profit (loss)?

 

b. Develop next year's budget: indicate the profit (loss).

Item Food revenue Beverage revenue Food cost Current Year's Amount $973,000 Next Year's Percentage Increase (Decrease) 4% $112,500 2% 36% 1% Beverage cost 23% (1%) Labor (including benefits) $298,000 (2%) Other operating costs 16% same Fixed costs $70,000 same Next Year's Amount ($)