The manager of the Spartanland restaurant

The manager of the Spartanland restaurant is developing the operating budget for next year using the following financial information from the current year:

Item Current Year’s Next Year’s Percentage Next Year’s

Amount Increase (Decrease) Amount ($)

Food revenue $973,000 4% _________

Beverage revenue $112,500 2% ________

Food cost 36% 1% _________

Beverage cost 23% (1%) _______

Labor (including benefits) $298,000 (2%) _________

Other operating costs 16% same _________

Fixe costs $70,000 same ________

a. What is the current year’s budgeted profit (loss)?

b. Develop next year’s budget: indicate the profit (loss).