Question

Expenses:	Fixed	Variable*
Labor	$                 100,000	10%
Cost of sales	$                            -	35%
Supplies	$                            -	5%
Energy	$                   12,000	3%
Marketing	$                     5,000	4%
Maintenance	$                   12,000	2%
Property taxes	$                     4,000
Depreciation	$                   15,000
Property insurance	$                     5,000
Rent	$                     3,500
* As a percentage of food sales.

1. The Robinson Diner, managed by Ina Fay, needs your assistance in preparing its 20X8 operating budget. Since the diner is a sole proprietorship, it will not pay income taxes. Information is in the Excel.
   1. Prepare the operating budget for 20X8. (9 points)

THIS IS EVERYTHING THAT I WAS GIVEN TO SOLVE THIS PROBLEM

Answer 1

As the revenue is not given in the question, the only way to draw an operating budget is to assume a revenue figure and find the costs accordingly as variable costs have to be calculated as a percentage of sales.

Revenue	$    800,000.00
Labour cost (100,000+10%)	$ (180,000.00)
Cost of sales (35%)	$ (280,000.00)
Supplies (5%)	$    (40,000.00)
Energy (12000+3%)	$ (144,000.00)
Marketing (5000+4%)	$    (37,000.00)
Maintenance (12000+2%)	$    (28,000.00)
Property tax	$      (4,000.00)
Depreciaition	$    (15,000.00)
Property insurance	$      (5,000.00)
Rent	$      (3,500.00)
Operating Income	$      63,500.00

Hope this helps.....