You have just been hired as general manager of Sunflower Suites, a small boutique hotel situated outside the downtown core of a major city. Sunflower Suites has 18 guest rooms and a small 40-seat caf that serves breakfast only, called the Breakfast Bar. The hotel has not been performing very well over the past few years and Shannon, the owner, has asked you to determine why results were not as planned in the prior year and what your plan is to return to profitability. breakfast bar analysis The Breakfast Bar is open to hotel guests and the public seven days a week. The restaurant manager budgeted sales of $262,800 to 21,900 guests. The chef is responsible for maintaining a 28% food cost. Server labour was budgeted at $43,800 and kitchen labour at $54,750. The caf requires two servers every day for six hours and two cooks every day for five hours. The only other costs incurred are utilities budgeted at $6,000 and the supervisor's salary of $40,000. Actual results for 2021 were as follows. Guests Served Revenue Food Cost Server Wages Expense Kitchen Wages Expense 17,520 $192,720 57,816 39,420 70,080 6,200 42,000 Utilities Expense Supervisor Salary Expense Department Operating Profit (Loss) a) Prepare a flexible budget analysis for the Breakfast Bar for the year. breakfast bar Flexible budget analysis ($22,796) For the year ended december 31, 2021 Flexible actual budget results Flexible budget sales Volume Variance static Price/ Variable budget cost per Variance guest b) Explain the flexible budgeting tool to Shannon and point out a few items you are concerned about. c) Calculate the price and quantity variances for revenue and cost variances for kitchen labour and explain the results to Shannon