https://file.aiquickdraw.com/mathbot/file/17273131434697h8b5xmk.jpg

The document you've provided shows a problem-solving assignment related to financial analysis of a restaurant. Here’s a breakdown and possible solution approach:

### 1. **Sales:**
   - **Food Sales**: 705,400 (82.8% of total sales)
   - **Beverage Sales**: 147,000 (17.2% of total sales)
   - **Total Sales**: 852,400 (100%)

### 2. **Cost of Sales:**
   - **Food Cost**: 249,480 (35.4% of total sales)
   - **Beverage Cost**: 35,700 (24.3% of beverage sales)
   - **Total Cost of Sales**: 285,180 (33.5% of total sales)

### 3. **Gross Profit:**
   - Gross Profit = Total Sales - Total Cost of Sales
   - \( 852,400 - 285,180 = 567,420 \)
   - Gross Profit Margin = 66.6% of total sales.

### 4. **Controllable Expenses:**
   - **Salaries and Wages**: 99,784 (11.6% of total sales)
   - **Employee Benefits**: 45,045 (5.3% of total sales)
   - **Other Controllable Expenses**: 82,000 (9.6% of total sales)
   - **Total Controllable Expenses**: 226,829 (26.5% of total sales)

### 5. **Non-Controllable (Fixed) Expenses:**
   - **Occupancy Costs**: 64,000 (7.5% of total sales)
   - **Fixed Salaries and Wages**: 77,200 (9.2% of total sales)
   - **Interest Expense**: 10,000 (1.2% of total sales)
   - **Depreciation**: 23,000 (2.7% of total sales)
   - **Total Fixed Expenses**: 174,880 (21.4% of total sales)

### 6. **Restaurant Profit / Loss:**
   - Profit/Loss = Gross Profit - Total Controllable Expenses - Fixed Expenses
   - \( 567,420 - 226,829 - 174,880 = 165,711 \)
   - The actual restaurant profit/loss is shown as **-2,905** (0.3% loss of total sales). There might be rounding or additional minor expenses contributing to this discrepancy.

### Solution Summary:
- **Total Sales**: 852,400
- **Total Cost of Sales**: 285,180
- **Gross Profit**: 567,420
- **Total Controllable Expenses**: 226,829
- **Total Fixed Expenses**: 174,880
- **Net Restaurant Profit/Loss**: -2,905

Let me know if you would like further details, clarification, or a deeper breakdown of any section.

Here are 5 related questions you could explore:
1. How can the restaurant improve its profit margin based on this data?
2. What percentage of total expenses are controllable versus fixed?
3. How could a reduction in food cost affect the gross profit?
4. What would be the effect of increasing beverage sales on overall profit?
5. How does the restaurant's labor cost compare to industry benchmarks?

**Tip:** Gross profit margin is a crucial metric in restaurant management. A higher gross profit can be achieved by optimizing sales and controlling food costs efficiently.

Assignment Problem Solving - Financial Analysis of a Restaurant's Profit and Loss

Analyze a restaurant's financial performance, calculating gross profit, controllable expenses, and fixed costs. Learn how to calculate profit margins and explore ways to improve financial outcomes based on percentage cost allocation. Suitable for business and finance students.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation