The Wheatfield Valley golf course has been owned by the Miley family for two generations. Currently it is managed by Cyrus Miley, a graduate of State University where he majored in hospitality management. Last year was a good one for the golf course. Now Cyrus is preparing next year's operating budget. He has gathered a great deal of information to help him prepare the best budget possible. After carefully analyzing that information, Cyrus predicts that next year the course will experience: A 5 percent increase in food sales A3 percent increase in beverage sales No change in food or beverage product cost percentage Salaries and wages (management and staff) that will increase 4.5 percent Employee benefits that will increase 10 percent . An increase of 2.5 percent in each Other Expense category No change in Occupancy costs and Depreciation & amortization. Interest payments of $1,000 per month Tax payments that are estimated to be 25 percent of Income Before Income Taxes Calculate this year's operating percentages on the budget worksheet provided, and then using his assumptions about next year, create Cyrus' new operating budget in dollars and percentages. Sales Food Beverage Total sales The Wheatfield Valley Golf Course F&B Department Budget Worksheet for Next Year This Year Actual $ % Next Year Budget $ % $169,250.00 $55,750.00 Cost of Sales Food 58,250.00 Beverages 9,375.00 Total cost of sales Labor Management 9,000.00 Staff Employee benefits Total labor Prime Cost Other Controllable Expenses The Wheatfield Valley Golf Course F&B Department Budget Worksheet for Next Year This Year Actual $ % Next Year Budget $ % 27,250.00 6,200.00 Direct operating expenses 13,200.00 Utilities 5,975.00 General & administrative expenses 6,375.00 Repairs & maintenance 1,750.00 Total other controllable expenses Controllable Income Non-controllable Expenses Occupancy costs 15,000.00 Equipment leases 0.00 Depreciation & amortization 4,200.00 Total Non-controllable Expenses Restaurant Operating Income Interest expense 12,000.00 Income Before Income Taxes Income taxes $14,106.25 Net Income