". Watson Walbert has been the executive chef at the Altina Restaurant for five years. Altina Restaurant is located in a dry area (alcoholic beverage sales are illegal), so it only sells food. In the last five years, Watson has worked for several general managers. The new general manager, however, is a real stickler for staying in budget, and at the moment Watson is a bit worried. According to the November's spreadsheet the general manager sent Watson, he had exceeded his food cost budget significantly. He felt that his team had performed well, but according to the memo he got from the owner, he still had to explain his department's subpar performance to the owner in person.Watson is confused, though. Although he spent more in food cost, he also sold more covers, so his food cost should be higher than originally budgeted! Watson decides to calculate a flexible budget based on his actual number of covers sold to see if he has, indeed, had cost control problems in any of his line items, especially food cost. Help him calculate his flexible budget, and then answer the questions that follow. Altina Restaurant Flexible Budget for November November original budget number of covers 18,000November original budget check average $7.00 November actual number of covers 21,000November actual check average $ Variable Dollars Per Cover Original Budget Flexible Budget Actual Variance Favorable UnfavorableNUMBER OF COVERS 18,000 21,000 21,000 Sales: Food $7.00 $162,000 $ $200,000 $ LESS VARIABLE COSTS Food Cost $3.12 $56,160 $ $60,500 $ Management, Staff, and Benefits $1.25 $22,500 $ $22,000 $ Telephone $0.02 $360 $ $575 $ Marketing $0.08 $1,440 $ $1,750 $ Utilities $0.14 $2,520 $ $2,500 $ Repairs and Maintenance $0.11 $1,780 $ $2,600 $ Contribution Margin $4.28 $77,040 $ $110,075 $ LESS FIXED COSTS Management, Staff, and Benefits $28,800 $28,800 $28,800 0 Telephone $360 $360 $360 0 Marketing $5,400 $5,400 $5,400 0 Utilities $3,600 $3,600 $3,600 0 Repairs and Maintenance $150 $150 $150 0 Administrative and General $2,000 $2,000 $2,000 0 Depreciation $1,000 $1,000 $1,000 0 Occupancy Costs $5,000 $5,000 $5,000 0 INCOME BEFORE TAXES $30,730 $ $63,765 $ Tax Rate 40% $12,272 $ $25,506 $ NET INCOME $18,438 $ $38,257 $