Carreras Caf is a Spanish restaurant in a college town. The owner expects that the...
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Accounting
Carreras Caf is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 30 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 4,600 meals at an average price of $20. In the summer (June through August), the average price of a meal typically increases by 35 percent and the average food cost of a meal increases by 20 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
$
11,200
Labor
16,100
Other variable costs
6,600
Fixed service costs
8,700
Total service costs
$
42,600
Marketing and administrative costs
Marketing (variable with respect to meals)
6,600
Administrative (fixed)
4,200
Total marketing and administrative costs
$
10,800
Total costs
$
53,400
Required:
Prepare a budgeted income statement for June. (Do not round intermediate calculations.)
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