Food sales $ 950,000 Other revenue 5% of total revenue Expenses: Fixed Variable* Labor $

Food sales	$ 950,000
Other revenue	5% of total revenue

Expenses:	Fixed	Variable*
Labor	$ 100,000	10%
Cost of sales	$ -	35%
Supplies	$ -	5%
Energy	$ 12,000	3%
Marketing	$ 5,000	4%
Maintenance	$ 12,000	2%
Property taxes	$ 4,000
Depreciation	$ 15,000
Property insurance	$ 5,000
Rent	$ 3,500
* As a percentage of food sales.

The Robinson Diner, managed by Ina Fay, needs your assistance in preparing its 20X8 operating budget. Since the diner is a sole proprietorship, it will not pay income taxes. Information is in the Excel.
1. Prepare the operating budget for 20X8. (9 points)

Expert Solution

1. Operating budget for 2018 -

Operating Budget for 2018
Particulars	Amount $	Amount $
Food sales	950,000	95%
Other revenue	50,000	5%
Total Revenue	1,000,000	100%
Expenses	Fixed	Variable
Labor	100,000	95,000
Cost of sales	-	332,500
Supplies	-	47,500
Energy	12,000	28,500
Marketing	5,000	38,000
Maintenance	12,000	19,000
Property taxes	4,000
Depreciation	15,000
Property insurance	5,000
Rent	3,500
Total Expenses	156,500	560,500

Operating Profit	283,000

ekkarill92 answered 2 years ago

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