A manager is preparing a revenue budget for next month. The following is the manager’s current month actual operating results. ACTUAL OPERATING RESULTS CURRENT MONTH Revenue Source Number of Guests Average Sale per Guest Sales Restaurant 3492 $20.50 $71,586 Lounge 515 $12.00 $ 6,180 Banquet room 388 $28.50 $11,058 Total 4395 $20.21 $88,824 Create the revenue forecast for next month based on the following assumptions. Restaurant guest counts will be 3,600 with an average sale per guest of $21.00. Lounge guests to be served are estimated at 525 with a 10 percent increase in average sale per guest. The banquet room will serve 425 customers and generate $12,750 in sales. NEXT MONTH BUDGET Revenue Source Number of Guests Average Sale per Guest Sales Restaurant 3,600.00 ? ? Lounge ? ? ? Banquet room ? ? ? Total ? ? ? What will be the manager’s revenue forecast for next month? What will be the manager’s average sale per guest forecast for next month? What is the overall percentage increase in the revenue forecast when compared to the current month’s actual operating results? What are some factors that would cause the manager of an operation to create a sales forecast for the next month that exceeds the operation’s current month actual operating results?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A manager is preparing a revenue budget for next month. The following is the manager’s current month actual operating results.
ACTUAL OPERATING RESULTS CURRENT MONTH
|
Revenue Source |
Number of Guests |
Average Sale per Guest |
Sales |
|
Restaurant |
3492 |
$20.50 |
$71,586 |
|
Lounge |
515 |
$12.00 |
$ 6,180 |
|
Banquet room |
388 |
$28.50 |
$11,058 |
|
Total |
4395 |
$20.21 |
$88,824 |
Create the revenue
- Restaurant guest counts will be 3,600 with an average sale per guest of $21.00.
- Lounge guests to be served are estimated at 525 with a 10 percent increase in average sale per guest.
- The banquet room will serve 425 customers and generate $12,750 in sales.
NEXT MONTH BUDGET
|
Revenue Source |
Number of Guests |
Average Sale per Guest |
Sales |
|
Restaurant |
3,600.00 |
? |
? |
|
Lounge |
? |
? |
? |
|
Banquet room |
? |
? |
? |
|
Total |
? |
? |
? |
- What will be the manager’s revenue forecast for next month? What will be the manager’s average sale per guest forecast for next month?
- What is the overall percentage increase in the revenue forecast when compared to the current month’s actual operating results?
- What are some factors that would cause the manager of an operation to create a sales forecast for the next month that exceeds the operation’s current month actual operating results?
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