Financial Statement: CVP Analysis
Use the financial statements provided in the sidebar to compute the percentages for all items included in the income statement sheet as a percent of revenue. Remember that total revenue is always 100 percent. Be sure to use the formula function in Microsoft Excel to show the formulas for each of the percentage you compute. After completion, compute the following:
•CVP analysis with the following assumptions:
•Contribution margin
•Contribution margin ratio
•Current variable costs
•Fixed costs
•BEP
In addition, analyze and compute the sales figure forecast in case the owner of The Green Restaurant wants to generate a 15 percent increase in net income before taxes are deducted for the same period next year.
Income Statement
The Green Restaurant
December 31, 20XX
Food Revenue $47,500
Expenses
Cost of Food Sales $16,415
Wages Expense $11,885
Supplies Expense $350
Utilities $1,200
Advertising $300
Depreciation Expense $160
Rent Expense $775
Interest Expense $120
Laundry Expense $560
Kitchen Fuel $150
Radio Advertising $1,200
Administrative Expense $2,200
Repairs and Maintenance $600
Total Expenses $35,915
Net Income $11,585
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