| Assignment 3 | Budget for Jan & Feb 2008 | ||||||||||||||
| Jan | Feb | ||||||||||||||
| Food Sales (din) | 60000 | 68000 | |||||||||||||
| Food Sales(TA) | 15000 | 18000 | |||||||||||||
| Bev Sales (A) | 11000 | 13000 | |||||||||||||
| Bev sales (NV) | 6500 | 8000 | |||||||||||||
| Total | 92500 | 107000 | |||||||||||||
| Expenses | |||||||||||||||
| Food Purchases | 12000 | 15000 | |||||||||||||
| Bev Purchase (a) | 8000 | 10000 | |||||||||||||
| Bev Purchase (NA) | 4000 | 6000 | |||||||||||||
| Wages | 35000 | 38000 | |||||||||||||
| Supperannuation | 3000 | 4000 | |||||||||||||
| Rent | 7000 | 8000 | |||||||||||||
| Other | 7800 | 9000 | |||||||||||||
| Total | 76800 | 90000 | |||||||||||||
| Net Profit | 15700 | 17000 | |||||||||||||
| Following are the changes which are required to be made are as follows: | |||||||||||||||
| 1 | If there is any other route through which customers can reach the restaurant should be considered and if some hoardings are required to be placed on that route that should be placed. | ||||||||||||||
| 2 | Ask Your marketing agents to work eagerly in the remaining part of period which can cover up the loss incurred during the road work. | ||||||||||||||
| 3 | If some discounts can be offered to the customers during the road work that should be offered so that some may come any how. | ||||||||||||||
| 4 | Some discounts or coupon can be issued so that more rush comes into restaurant which can cover up the loss. | ||||||||||||||
| Assignment 7 | Calculation of variances | ||||||||||||||
| 1 | Income | Variance | U/F | ||||||||||||
| Breakfast Food | 8.66% | F | |||||||||||||
| Breakfast Bev | 17.74% | F | |||||||||||||
| Lunch Food | -18.98% | U | |||||||||||||
| Lunch Bev | -29.53% | U | |||||||||||||
| Dinner Food | 2.11% | F | |||||||||||||
| Dinner Bev | 2.79% | F | |||||||||||||
| Functions Food | 72.87% | F | |||||||||||||
| Functions Bev | 61.09% | F | |||||||||||||
| Expenses | variance | U/F | |||||||||||||
| Purchases Food | 13.47% | F | |||||||||||||
| Purchases bev | 23.34% | F | |||||||||||||
| Wages | 6.60% | F | |||||||||||||
| Supperannuation | 6.60% | F | |||||||||||||
| Rent | 0.00% | ||||||||||||||
| marketing | -10.80% | U | |||||||||||||
| Waste Disposal | 9.38% | F | |||||||||||||
| Office Supplies | 35.56% | F | |||||||||||||
| Work Cover | 5.56% | F | |||||||||||||
| 2 | Wages compare to Sales | ||||||||||||||
| Budget | Actual | ||||||||||||||
| Sales | 2614800 | 2942172 | |||||||||||||
| Wages | 993600 | 1059181 | |||||||||||||
| % | 38.00% | 36.00% | |||||||||||||
| As actual precentage of wages is less when compared to Budget so it is favourable | |||||||||||||||
| 3 | Food Cost compared to Sales | ||||||||||||||
| Budget | Actual | ||||||||||||||
| Sales | 2614800 | 2942172 | |||||||||||||
| Food Cost | 664000 | 753448 | |||||||||||||
| % | 25.39% | 25.61% | |||||||||||||
| As actual precentage of Food Cost is higher when compared to Budget so it is unfavourable | |||||||||||||||
| 4 | Beverage Cost compared to Sales | ||||||||||||||
| Budget | Actual | ||||||||||||||
| Sales | 2614800 | 2942172 | |||||||||||||
| Beverage Cost | 162000 | 199810 | |||||||||||||
| % | 6.20% | 6.79% | |||||||||||||
| As actual precentage of Beverage Cost is higher when compared to Budget so it is unfavourable | |||||||||||||||
| Assignment 4 | There are several ways to increase the sales of restaurant some of which are follows: | ||||||||||||||
| 1 | Post colorful and refreshing drinks online : You should post on your facebook page regarding seasonal drinks. The three irresistible ingriedients in summer are fruit, Ice and color | ||||||||||||||
| 2 | Offer online ordering to incerease the buisiness: You should add the whole menu on your website becaue taking online order avoids many potential issues | ||||||||||||||
| Moreover studies show that ratio of online ordering are 5-25% more than phone orders. | |||||||||||||||
| 3 | Distribute ” Online Orders” cards: There are many ways to promote onkline ordering on your website but even though we are in the internet age , customers need a | ||||||||||||||
| physical reminder to make that connection | |||||||||||||||
| A Post card or flyer can be used on which menu is printed, yor contact info and your webiste address with the note to order online should be there. That will attract your customers | |||||||||||||||
| and your business will grow. | |||||||||||||||
| Assignment 6 | Short Notes: | ||||||||||||||
| 1 | Debtors: Debtors are the receivable of the organisation to whom sales are made. They are also known as account receivables because they are our customers. | ||||||||||||||
| They are shown as current assets under balance sheet because we have to take funds from them. | |||||||||||||||
| 2 | GST: GST is goods and service tax . It is the tax levied by the central government on the goods. | ||||||||||||||
| 3 | Revenue: Revenue means the sales which an organisation makes. Revenue is an income for an organisation and shown in credit side of profit & Loss account. | ||||||||||||||
| Higher is the revenue higher is the profit. | |||||||||||||||
| 4 | Cash Flow: Cash Flow statement is the statement which is prepared by every organisation to know about the inflow and outflow of cash under different heads | ||||||||||||||
| I.e cash Flow from operating activities , cash Flow from investing activities and cash flow from financing activities. | |||||||||||||||
| There are 2 different methods to prepare the cash flow one is direct method and other is indirect method | |||||||||||||||
| At the end of the cash flow the closing balance of cash should tally with the cash balance in our books | |||||||||||||||
| 5 | Food cost percentage: It is the cost of food when compared to whole cost of the restaurant. It is the cost of the restaurant which it has incurred on the food | ||||||||||||||
| 6 | Occupancy rate: It the rate of the occupoancy of the rooms of the hotel. In other words it is the percentage of rooms that has been occupied when compared | ||||||||||||||
| to the total rooms available in the hotel. Higher the occupancy rate better it is for the hotel and higher will be revenue of the hotel | |||||||||||||||
| Assignment 5 | 1 | In the superannuation payment there is lot of fluctuation every month. So much of fluctuation cannot be possible | |||||||||||||
| 2 | July | August | September | October | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | |||
| Sales | 98410 | 89310 | 91270 | 94550 | 105410 | 106470 | 93100 | 83820 | 79920 | 71450 | 84010 | 86100 | |||
| Wages | 44040 | 39570 | 39750 | 41530 | 44600 | 45840 | 40880 | 36810 | 33560 | 30590 | 34600 | 36350 | |||
| % | 45% | 44% | 44% | 44% | 42% | 43% | 44% | 44% | 42% | 43% | 41% | 42% | |||
| 3 | Three negative trends that are causing trend to lower profitability as the year went on are: | ||||||||||||||
| a) Decling sales graph of food as out of 12 months in 7 seven months sales are showing decling trend. | |||||||||||||||
| b) Bevage sales are also showing decling trend as in 8 months out of 12 months it is showing decling trend. | |||||||||||||||
| c) | |||||||||||||||
| July | August | September | October | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | ||||
| Sales | 98410 | 89310 | 91270 | 94550 | 105410 | 106470 | 93100 | 83820 | 79920 | 71450 | 84010 | 86100 | |||
| Food Cost | 31490 | 28570 | 28750 | 29310 | 32677 | 33005 | 31190 | 29500 | 27175 | 25005 | 29400 | 30150 | |||
| % | 32% | 32% | 31% | 31% | 31% | 31% | 34% | 35% | 34% | 35% | 35% | 35% | |||
| Food Cost has increased in the last months as compared to initial months | |||||||||||||||
| 4 | July | August | September | October | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | |||
| Sales | 98410 | 89310 | 91270 | 94550 | 105410 | 106470 | 93100 | 83820 | 79920 | 71450 | 84010 | 86100 | |||
| Bev Purchase | 5100 | 6500 | 6405 | 5950 | 4640 | 5450 | 4740 | 6360 | 5025 | 3900 | 3860 | 4280 | |||
| % | 5% | 7% | 7% | 6% | 4% | 5% | 5% | 8% | 6% | 5% | 5% | 5% | |||
| In The month of August, September February the beverage cost has almost doubled as normal there might be reason that the employees | |||||||||||||||
| Might have sold outside the hotel and money had not been deposited in the account of hotel | |||||||||||||||
