The Phit House Authentic BBQ is a full$-$service restaurant and bar. On October $1,20$XX$,$ the restaurant suffered a business interruption loss from a flood caused by a broken water pipe. The loss period has been determined to be $30$ days $(1$ month$).$ The restaurant is completely shut down during the loss period.

Please calculate the business interruption value and the loss based on historical information for The Phit House Authentic BBQ

For each group, please post your solution in the DB with all group member's names on the post.

Facts: The Phit House Authentic BBQ is a full service restaurant and bar. On October $1,20$XX

the restaurant suffered a business interruption loss from a flood caused by a broken water pipe.

The loss period has been determined to be $30$ days $(1$ month$).$ The restaurant is completely shut

down during the loss period.

$1)$ Officers continued to work during the loss period to restore operations.

$2)$ Key employees were paid during the loss period $($insurance policy allows payment for

key employees$).$

$3)$ Advertising is a discretionary expense.

$4)$ Annual insurance is prepaid.

$5)$ The restaurant has taken advantage of the Cablevision triple play program where phone,

internet and cable are included in one low price per month. The loss period occurs during

the contract with Cablevision.

$6)$ The staff wears uniforms. The chef doesn$$t$.$

$7)$ It is estimated that the utilities expense will be reduced by $(1)/(2)$ during the loss period.

$8)$ Rent is obligated in lease only if building is tenable.

$9)$ Prior year monthly sales $($October $1-$September $30)$;

$119,600$

$218,799$

$317,789$

$420,887$

$519,500$

$619,300$

$719,990$

$820,675$

$921,000$

$1020,800$

$1121,775$

$1220,150$

$240,265$

Please calculate the business interruption value and the loss to based on historical information for The Phit House Authentic BBQ ear ended $12/31$ XX

As a $\%$ of

Gross

Receipts

Continuing

Expenses as a

$\%$ of Gross

Receipts

Gross Receipts $246,000$$ $100\mathrm{.}00\%$

Cost of Goods Sold $82,00033\mathrm{.}33\%$

Gross Profit $164,000$$ $66\mathrm{.}67\%$

Expenses:

Salaries $-$ Officer $18,0007\mathrm{.}32\%$

Salaries $-$ Waiters$/$Wattress $22,0008\mathrm{.}94\%$

Salaries $-$ Chef $25,00010\mathrm{.}16\%$

Rents $12,0004\mathrm{.}88\%$

Advertising $7,5003\mathrm{.}05\%$

Insurance $7,6373\mathrm{.}10\%$

Telephone$/$Internet$/$Cable $5,7882\mathrm{.}35\%$

Uniforms $6430\mathrm{.}26\%$

Utilities $2,4601\mathrm{.}00\%$

Total Expenses: $101,028$$ $41\mathrm{.}07\%$

Net Profit $62,972$$ $25\mathrm{.}60\%$

Business Interruption Value $-$ Net Profit plus Continuing Expenses:

Lost Gross Receipts

Multiplied by Business Interruption Value

Loss of Income