P3.7 Two successive monthly income stat motor lodge are shown here. Present the income staleme live horizontal analysis format and comment on any significant
Sales Revenue August Septsinber Room service S 11,300 S 9,000 Dining room 75.900 63,700 Bar-lounge 5.500 4.100 Coffee shop 53.400 48.700 Banquets 66.200 70.500 Total Sales Revenue $212.300 $196,000 Cost of sales 68,100) 1 63.900) Gross Margin $144,200 5132,100 Operating Expenses Wages and salaries S 75,800 S 71.100 Employee benefits 11.400 10.700 Linen and laundry 3.200 3.000 China, glassware. & tableware 5,300 4.900 Miscellaneous operating costs 4,900 4.700 Operating supplies 9.6(X) 8.800 Total Operating Expenses ( 110,200) i 103 1 Departmental Operating Income $ 34,000 $ 28.90°
evens
Sales revenue-food Sales revenue-beverages Total Sales Revenue
Operating Expenses
Cost of sales-food Cost of sales-beverage
16.800
19.900
revenue departments with direct costs and average monthly : s given in ito following information:
Departments
Sales revenue Cost of sales Wages and salaries cost Other direct costs
Dining
s204,000 81,600 65.280 18.360
The restaurant also has the following indi
administrative and general expenses Marketing expenses Utilities expense Pmperty operation and maintenance Depreciation expense Insurance expense
Banquets Beverages 110.000 592.000 41.800 29.440 c .200 12.880 800 1.840
buted costs:
512,000 10.00() 5,1:XX) 12.120 14.000 4.000
a. Prepare a consolidated departmental contributory income siai, showing each of the three divisions side by side for comparison 1)• allocate indirect costs. b. Allocate the indirect costs to the divisions and prepare a departmeni.. income statement showing each of the three divisions side by side fo: comparison. Administrative, general. and marketing costs are allocated based on sales revenue. The remaining indirect costs are allocated based on square footage used by each division: Round all percentage calcu-lations to a whole percentage. Dining 2,400 sq. ft. Banquet 3,000. sq. ft. Beverage 600 sq. ft. c. Aft locating the indirect costs. would you consider closing any of Ihe dlInsions? Whitror why nor:
3 A sew mstaurant purchased the wine dining the first month of up:rations:
.NLarch 2: Purchased 12 each 750 ml bottles of M & B wine @ $12.50 each. NLarch 16: Purchased 24 each 750 ml bottles of M & B w ine 50 each.
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