Question

(Feb 21—27) Projected Actual Difference Food Cost $6,971 $7,842 +$871 (over) Beverage Cost $3,954 $4, 156 +$202 (over) Labor Cost $8,423 $9,541 +$1,118 (over) Other Costs $7,645 $7,645 $0 (even) Total Costs $26,993 $29, 184 +$2191 (over) Food Sales $18,565 $14,326 -$4,239 (under) Beverage Sales $12,872 $10,852 -$2,020 (under) Total Sales (Revenue) $31,437 $25,178 -$6,259 (under) Total Profit $4,444 -$4,006 -$8,450 (under) What were the results of the restaurant's actual revenue, relative to its actual costs? a. Loss b. Break-even c. Profit

Answer 1

The results of the restaurant's actual revenue relative to its actual costs indicate a loss. So, the correct option is:

a. Loss

Explanation - The restaurant's actual revenue ($25,178) is less than its actual costs ($29,184), resulting in a deficit. In other words, the restaurant incurred more expenses than it generated in revenue during the specified period. This financial situation is commonly referred to as a loss, indicating that the restaurant operated at a deficit, and its expenses exceeded its income.