Create budget assumption O SearchBudget Finals Sp21 (1) - Protected View -AutoSave O ffInsertPage LayoutFormulasDataReviewViewHelpFileHomeDrawEnable EditingO PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View.A25MiscellaneousChix and WafflesMonth Ending May, 2021Month Ending June, 2021Month Ending July, 20211 Month Ending February 29, 2020s Sales RevenueFIDI88,00085%Special Events15,00015%Total Sales Revenue103,000 100%* Cost of Sales* Cost of Sales, Food41,20040%Less: Employee Meals2400%12Net cost of sales, food40,96040%Total Net Cost of Sales40,960E Gross Margin (Profit)62,04060%- Departmental Operating ExpensesSalaries and wages11,91012%Employee benefits3,6584%Total payroll related expenses15,56815%28Paper Supplies, Disposables11,0002411%Cleaning supplies1,0301%Laundry2640%23Licenses850%Miscellaneous1000%s Total Operating Expenses28,04727%7 Net Income (Loss)33,99333%Sheet1Sheet2Sheet3ReadyP Type here to searchW n viruses. Unless you need to edit, it's safer to stay in Protected View.Enable EditingPremise: After a stellar February performance, your Chix and Waffles food truck sat in thegarage for the duration of the lockdown. You will slowly re-start your business on May 16and plan on increasing volume by June and July but still not at February levels.$8/plate. You operated the truck onIn February, you did 550 covers/day at an averageweekdays at a FIDI location (5 days/wk) and did special events one day per weekend, 250covers each at $15/plate.Assumptions:1. For the second half of May, only 1/3 of the February daily covers will be achievable.No special events are anticipated.2. The operation had 4 employees: Chef/Owner at an annual salary of $45,000 (that'syou), 3 cooks/assistants at $17/hr and 40 hrs/wk3. In May, only you, the chef and an assistant will re-start. Another cook will be addedin June and by July, you will be staffed at pre-pandemic levels.4. The truck is fully depreciated.5. Food cost is anticipated to be at 45% in May and 42% for the months of June and July.This is attributed to the Increase in prices across the board.6. Special events will be resumed in July.7. Conservative forecast for May sales is 1/3 of February daily covers. June sales will beat 75% of February. July daily sales will be at February levels.8. Paper supplies/disposables are budgeted at $1/cover.9. Cleaning supplies may rise .5% due to more stringent sanitizing protocols.10. Laundry is pegged at $2.75/day per employee.11. Employee benefits are at 24% of salaries and wages + $140/mo per employee forHealth Insurance and employee meals at $2.50 a day per employee.12. Licenses and Miscellaneous Expenses are fixed.D Focus立

Budgeting: Budgeting can be defined as the process of developing a financial plan that company…

Answered: Create budget assumption

Business

Accounting

Create budget assumption

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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