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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 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 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 $11,000 16,500 6,400 9,300 $43,200 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 6,000 5,000 $11,000 $54,200 Total costs 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 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 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 $11,000 16,500 6,400 9,300 $43,200 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 6,000 5,000 $11,000 $54,200 Total costs Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)

Essentials of Business Analytics (MindTap Course List)
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter8: Time Series Analysis And_forecasting
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Problem 27P: Hogs & Dawgs is an ice cream parlor on the border of north-central Louisiana and southern Arkansas...
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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 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 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 $11,000 16,500 6,400 9,300 $43,200 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 6,000 5,000 $11,000 Total costs $54,200 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)
Transcribed Image Text: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 4,400 meals at an average price of $15. In the summer (June through August), the average price of a meal typically increases by 30 percent and the average food cost of a meal increases by 15 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 $11,000 16,500 6,400 9,300 $43,200 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 6,000 5,000 $11,000 Total costs $54,200 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.)
Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.) Carreras Café Budgeted Income Statement For the month of June Service costs: Total service costs $ $ Marketing and Administrative Total marketing and administrative costs $ $
Transcribed Image Text:Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.) Carreras Café Budgeted Income Statement For the month of June Service costs: Total service costs $ $ Marketing and Administrative Total marketing and administrative costs $ $
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