Answer :
Let's analyze the income statements and projected increases step by step to help Jaymal create his budget for next year. There are five military bases with data provided for each base. The increases in wages and revenue are projected at 2% for the following year.
First, we need to calculate the projected labor costs and revenues for each unit by increasing the given figures by 2%.
Here are the calculations:
### Pensacola
- This Year's Labor Cost: \[tex]$285,000 - This Year's Revenue: \$[/tex]980,500
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$285,000 \times 1.02 = \$290,700 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$980,500 \times 1.02 = \$1,000,110 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$290,700}{\$1,000,110} \right) \times 100 \approx 29.07\% \][/tex]
### Daytona
- This Year's Labor Cost: \[tex]$197,250 - This Year's Revenue: \$[/tex]720,000
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$197,250 \times 1.02 = \$201,195 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$720,000 \times 1.02 = \$734,400 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$201,195}{\$734,400} \right) \times 100 \approx 27.40\% \][/tex]
### Fort Myers
- This Year's Labor Cost: \[tex]$235,500 - This Year's Revenue: \$[/tex]850,250
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$235,500 \times 1.02 = \$240,210 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$850,250 \times 1.02 = \$867,255 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$240,210}{\$867,255} \right) \times 100 \approx 27.70\% \][/tex]
### Tampa
- This Year's Labor Cost: \[tex]$279,750 - This Year's Revenue: \$[/tex]921,750
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$279,750 \times 1.02 = \$285,345 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$921,750 \times 1.02 = \$940,185 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$285,345}{\$940,185} \right) \times 100 \approx 30.35\% \][/tex]
### Miami
- This Year's Labor Cost: \[tex]$1,190,250 - This Year's Revenue: \$[/tex]3,720,000
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$1,190,250 \times 1.02 = \$1,214,055 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$3,720,000 \times 1.02 = \$3,794,400 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$1,214,055}{\$3,794,400} \right) \times 100 \approx 32.00\% \][/tex]
### Summary Table
To summarize the calculations in a tabular format:
[tex]\[ \begin{array}{|l|c|c|c|c|c|} \hline \text{Base} & \text{This Year's Labor Cost} & \text{This Year's Revenue} & \text{Projected Labor Cost} & \text{Projected Revenue} & \text{Projected Labor Cost \%} \\ \hline \text{Pensacola} & \$285,000 & \$980,500 & \$290,700 & \$1,000,110 & 29.07\% \\ \hline \text{Daytona} & \$197,250 & \$720,000 & \$201,195 & \$734,400 & 27.40\% \\ \hline \text{Fort Myers} & \$235,500 & \$850,250 & \$240,210 & \$867,255 & 27.70\% \\ \hline \text{Tampa} & \$279,750 & \$921,750 & \$285,345 & \$940,185 & 30.35\% \\ \hline \text{Miami} & \$1,190,250 & \$3,720,000 & \$1,214,055 & \$3,794,400 & 32.00\% \\ \hline \end{array} \][/tex]
Thus, Jaymal should budget the projected revenue and labor costs as shown above for each unit. The table also includes the projected labor cost percentages if he meets his budget.
First, we need to calculate the projected labor costs and revenues for each unit by increasing the given figures by 2%.
Here are the calculations:
### Pensacola
- This Year's Labor Cost: \[tex]$285,000 - This Year's Revenue: \$[/tex]980,500
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$285,000 \times 1.02 = \$290,700 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$980,500 \times 1.02 = \$1,000,110 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$290,700}{\$1,000,110} \right) \times 100 \approx 29.07\% \][/tex]
### Daytona
- This Year's Labor Cost: \[tex]$197,250 - This Year's Revenue: \$[/tex]720,000
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$197,250 \times 1.02 = \$201,195 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$720,000 \times 1.02 = \$734,400 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$201,195}{\$734,400} \right) \times 100 \approx 27.40\% \][/tex]
### Fort Myers
- This Year's Labor Cost: \[tex]$235,500 - This Year's Revenue: \$[/tex]850,250
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$235,500 \times 1.02 = \$240,210 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$850,250 \times 1.02 = \$867,255 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$240,210}{\$867,255} \right) \times 100 \approx 27.70\% \][/tex]
### Tampa
- This Year's Labor Cost: \[tex]$279,750 - This Year's Revenue: \$[/tex]921,750
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$279,750 \times 1.02 = \$285,345 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$921,750 \times 1.02 = \$940,185 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$285,345}{\$940,185} \right) \times 100 \approx 30.35\% \][/tex]
### Miami
- This Year's Labor Cost: \[tex]$1,190,250 - This Year's Revenue: \$[/tex]3,720,000
Projected Labor Cost:
[tex]\[ \text{Projected Labor Cost} = \$1,190,250 \times 1.02 = \$1,214,055 \][/tex]
Projected Revenue:
[tex]\[ \text{Projected Revenue} = \$3,720,000 \times 1.02 = \$3,794,400 \][/tex]
Projected Labor Cost Percentage:
[tex]\[ \text{Labor Cost Percentage} = \left( \frac{\$1,214,055}{\$3,794,400} \right) \times 100 \approx 32.00\% \][/tex]
### Summary Table
To summarize the calculations in a tabular format:
[tex]\[ \begin{array}{|l|c|c|c|c|c|} \hline \text{Base} & \text{This Year's Labor Cost} & \text{This Year's Revenue} & \text{Projected Labor Cost} & \text{Projected Revenue} & \text{Projected Labor Cost \%} \\ \hline \text{Pensacola} & \$285,000 & \$980,500 & \$290,700 & \$1,000,110 & 29.07\% \\ \hline \text{Daytona} & \$197,250 & \$720,000 & \$201,195 & \$734,400 & 27.40\% \\ \hline \text{Fort Myers} & \$235,500 & \$850,250 & \$240,210 & \$867,255 & 27.70\% \\ \hline \text{Tampa} & \$279,750 & \$921,750 & \$285,345 & \$940,185 & 30.35\% \\ \hline \text{Miami} & \$1,190,250 & \$3,720,000 & \$1,214,055 & \$3,794,400 & 32.00\% \\ \hline \end{array} \][/tex]
Thus, Jaymal should budget the projected revenue and labor costs as shown above for each unit. The table also includes the projected labor cost percentages if he meets his budget.