Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,800 meals at an average price of $20. In the summer (June through August), the average price of a meal typically increases by 25 percent and the average food cost of a meal increases by 10 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meals) Variable service costs (with respect to meals) Food costs $10,800 16,700 6,200 9,200 $42,900 Labor Other variable costs Fixed service costs Total service costs Marketing and administrative costs Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs 5,900 4,300 $10,200 Total costs $53,100 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)

Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,800 meals at an average price of $20. In the summer (June through August), the average price of a meal typically increases by 25 percent and the average food cost of a meal increases by 10 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meals) Variable service costs (with respect to meals) Food costs $10,800 16,700 6,200 9,200 $42,900 Labor Other variable costs Fixed service costs Total service costs Marketing and administrative costs Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs 5,900 4,300 $10,200 Total costs $53,100 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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