Question

			INCOME STATEMENT
			YEAR ENDED DECEMBER 31, 200
						Change	Upcoming
Sales							Year
	Food			$1,120,964
	Beverage			$   465,200.00
	Total Sales				$    1,586,164.00
Cost of Sales
	Food		35.0%	$   392,337.00
	Beverage		22.0%	$   102,344.00
	Total Cost of Sales				$       494,681.00
Gross Profit					$    1,091,483.00
Controllable Expenses
	Salaries and Wages			$   396,541.00
	Employee Benefits		25.0%	$     99,135.00
	Other Controllable Expenses			$   275,330.00
Total Controllable Expenses					$       771,006.00
Income Before Occupancy costs		ancy Costs,			$       320,477.00
Interest, Depreciation, and Income Taxes
Occupancy Costs				$     75,230.00
Interest				$     25,600.00
Depreciation				$     79,099.00
Total					$       179,929.00
Restaurant Profit					$       140,548.00
1. Both food and beverage sales are expected to increase by 5 percent.
2. Food and beverage cost percentages will remain the same.
3. Salaries and wages will increase by 4 percent.
4. The cost of employee benefits will increase, but will continue to be the same percentage of salaries and wages.
5. Other controllable costs will increase by $6500.
6. Occupancy costs will increase by $2000.
7. Interest and depreciation will remain the same.

Answer 1