\begin{tabular}{|l|l|l|l|}
\hline
Weekly (Feb 21-27) & Projected & Actual & Difference \\
\hline
Food Cost & [tex]$\$[/tex] 6,971[tex]$ & $[/tex]\[tex]$ 7,842$[/tex] & [tex]$+\$[/tex] 871$ (over) \\
\hline
Beverage Cost & [tex]$\$[/tex] 3,954[tex]$ & $[/tex]\[tex]$ 4,156$[/tex] & [tex]$+\$[/tex] 202$ (over) \\
\hline
Labor Cost & [tex]$\$[/tex] 8,423[tex]$ & $[/tex]\[tex]$ 9,541$[/tex] & [tex]$+\$[/tex] 1,118$ (over) \\
\hline
Other Costs & [tex]$\$[/tex] 7,645[tex]$ & $[/tex]\[tex]$ 7,645$[/tex] & [tex]$\$[/tex] 0$ (even) \\
\hline
Total Costs & [tex]$\$[/tex] 26,993[tex]$ & $[/tex]\[tex]$ 29,184$[/tex] & [tex]$+\$[/tex] 2,191$ (over) \\
\hline
Food Sales & [tex]$\$[/tex] 18,565[tex]$ & $[/tex]\[tex]$ 14,326$[/tex] & [tex]$-\$[/tex] 4,239$ (under) \\
\hline
Beverage Sales & [tex]$\$[/tex] 12,872[tex]$ & $[/tex]\[tex]$ 10,852$[/tex] & [tex]$-\$[/tex] 2,020$ (under) \\
\hline
Total Sales (Revenue) & [tex]$\$[/tex] 31,437[tex]$ & $[/tex]\[tex]$ 25,178$[/tex] & [tex]$-\$[/tex] 6,259$ (under) \\
\hline
Total Profit & [tex]$\$[/tex] 4,444[tex]$ & $[/tex]-\[tex]$ 4,006$[/tex] & [tex]$-\$[/tex] 8,450$ (under) \\
\hline
\end{tabular}

Based on the actual results, what adjustments need to be made to Food and Beverage costs?

Select one:
A. Food and Beverage costs need to be reduced by purchasing cheaper products, reducing waste, and/or reducing portion size.
B. Food and Beverage costs do not need to be adjusted because it will balance out next week.
C. Food and Beverage costs need to be increased by purchasing more products and increasing portion size.
D. Food and Beverage costs need to be increased by purchasing higher quality ingredients.



Answer :

Based on the actual results, it is evident that the Food and Beverage costs have exceeded the projected amounts. Specifically:

- Food Cost was over by \$871.
- Beverage Cost was over by \$202.
- This contributed to the Total Costs being over by \$2,191.

Additionally, the Food and Beverage Sales were both under the projected amounts:

- Food Sales were under by \$4,239.
- Beverage Sales were under by \$2,020.
- This contributed to the Total Sales (Revenue) being under by \$6,259.

Considering these actual results, the primary objective should be to align the Food and Beverage costs closer to the projected amounts to avoid such overspending. Therefore, Food and Beverage costs need to be managed more efficiently. The best strategy to accomplish this would be to:

a. Reduce the Food and Beverage costs by purchasing cheaper products, reducing waste, and/or reducing portion size.

These measures can help mitigate the over-expenditure and bring the costs back in line with projections, thereby improving overall financial performance.

When you look at the broader picture:
- Over-expenditure in any cost category without corresponding increases in revenue negatively impacts total profit.

Therefore, to address the overages in Food and Beverage costs, it is reasonable to choose option:
a. Food and Beverage costs need to be reduced by purchasing cheaper products, reducing waste, and/or reducing portion size.