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Carreras Café is a Spanish restaurant in a college town. The owner expects that the number of meals served in June will be 40 percent below those served in May, because so many students leave for the summer. In May, the restaurant served 5,100 meals at an average price of $20. In the summer (June through August), the average price of a meal typically increases by 35 percent and the average food cost of a meal increases by 15 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service costs (variable with respect to meala) Variable service costs (with respect to meals) Food conts Labor Other variable costs Pixed service costs Total service costs Marketing and administrative conta Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative costs Total costs $10,800 16,800 5,800 9,100 542,500 6,400 4,200 $10,600 $53,100 Required:
ses by 15 percent. Other costs are typically unchanged during the summer. The following cost information is available for May. Service coste (variable with respect to meals) Variable service conts with respect to meals) Food costs Labor Other variable costa Pixed service coste Total service costs Marketing and administrative costa Marketing (variable with respect to meals) Administrative (fixed) Total marketing and administrative conta Total costs $10,800 16,800 5,800 9,100 $42,500 6,400 4,200 $10,600 $53, 100 Required: Prepare a budgeted income statement for June. (Do not round Intermediate calculations.) Carreras Café Budgeted Income Statement the month of June
5,800 9,100 542,500 Other Vocable costs Fixed service conta Total service conta Marketing and administrative posts Marketing (variable with respect to meals) Administrative (xed) Total marketing and administrative conte Total costs 6,400 6.200 $10,600 $53,100 Required: Prepare a budgeted income statement for June. (Do not round intermediate calculations.) Carreras Cafe Budgeted Income statement For the month of June Service cont Total service costo 5 5 0 0