Problem 3 Assume the approved food operations budget for the Hilotown Restaurant for 20X1 is as follows: Food revenue Food cost Payroll Payroll taxes/benefits Direct operating expenses Entertainment Advertising Utilities Administrative/general Repairs/maintenance Rent Real estate/property taxes Insurance Interest expense Depreciation Income (profit) before taxes $ 1,400,000 434,000 364,000 42,000 112,000 14,000 42,000 70,000 56,000 14,000 70,000 28,000 14,000 42,000 28,000 70,000 % of Revenue 100 31 26 3 8 1 3 5 4 1 5 2 N132|5O|| Unforeseen problems beyond the control of the owner (ongoing terrorism alerts tha have significantly reduced the tourist travel on which the restaurant relies) have caused
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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