Following are excerpts from an income statement:Food Sales265000Beverage Sales80000Cost of food sold78000Cost of Beverage sold20000Labor 111000Controllable Expenses67000Non-controllable Expenses27000Other Expenses4000Identify these items from the above information:a.) Prime cost dollars and percentageb.) Controllable Income dollars and percentagec.) Operating Income dollars and percentaged.) Income before Income Taxes dollars and percntagee.) Food Cost of Sales %f.) Beverage Cost of Sales %g.) Total Cost of Sales %

Asked Oct 24, 2019

Following are excerpts from an income statement:

Food Sales 265000
Beverage Sales 80000
Cost of food sold 78000
Cost of Beverage sold 20000
Labor 111000
Controllable Expenses 67000
Non-controllable Expenses 27000
Other Expenses 4000

Identify these items from the above information:

a.) Prime cost dollars and percentage

b.) Controllable Income dollars and percentage

c.) Operating Income dollars and percentage

d.) Income before Income Taxes dollars and percntage

e.) Food Cost of Sales %

f.) Beverage Cost of Sales %

g.) Total Cost of Sales %



Expert Answer

Step 1

Hence, the prime cost is $209,000 which is obtained by the addition of cost of sales and labour.The controllable income that  is $69,0000 obtained by subtracting prime cost and the...


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Income statement Particulars Amount Sales Food Beverages Total sales Cost of sales Food Beverages Total cost of sales Labour Prime cost Controllable expenses Controllable income Non controllable expense Operating income $265,000 $80,000 $345,000 $78,000 $20,000 $98,000 $111,000 $209,000 $67,000 $69,000 $27,000 S42,000


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