Quantic Business and Technology School Account project

8/28/24, 6:57 PMHospitality Industry Managerial Accounting : Problems
Donna Drysdale, co-owner of Drysdale Pizza, provides you with the following information for 20X3 and 20X4:
20X3
20X4
Food sales
$ 800,000
$ 850,000
Other sales
50,000
60,000
Total sales
850,000
910,000
Cost of food sold
Cost of other sales
160,000
20,000
170,000
24,000
180,000
194,000
670,000
716,000
Salaries and wages
Employee benefits
Other expenses
160,000
50,000
150,000
170,000
55,000
170,000
Income before occupation costs, interest, and depreciation
310,000
321,000
Depreciation expense
80,000
80,000
Interest expense
Occupation costs
80,000
40,000
75,000
45,000
Income before income taxes
110,000
121,000
Income taxes
30,000
35,000
$ 80,000
$ 86,000
Total cost of sales
Gross profit
Controllable expenses:
Net income
Other data:
Rent expense
Food customers served
Food inventory at year-end
Employee meals*
20X2
20X3
20X4
–
$ 10,000
$ 11,000
–
$ 4,800
66,667
$ 5,000
65,385
$ 5,300
–
$ 1,500
$ 1,550
*Included as part of employee benefits.
https://bookshelf.vitalsource.com/reader/books/978-1-949324-39-6/epubcfi/6/140[%3Bvnd.vst.idref%3Dvst-8bf14255-99f1-43ae-9105-e611ed6a137e]!/…
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8/28/24, 6:57 PM
Hospitality Industry Managerial Accounting : Problems
Required:
1. Determine the following for 20X3 and 20X4:
a. Average food service check
b. Food cost percentage
c. Labor cost percentage
d. Labor cost per customer served
e. Number of times interest earned
f. Operating efficiency ratio
g. Fixed charge coverage ratio
h. Profit margin
2. Was Drysdale Pizza more efficient in 20X3 or 20X4? Support your answer with figures and discussion.
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