HR7003 Managing Financial and Human Resources for Sustainable Business Success Homework- University of East London
Task:
The Fleet Highlands Café is a company that prepares meals for tourists and citizens in its kitchen located next to the local airport. The company's planning and actual budgets for March appears below:
The Fleet Highlands Café
Planning and actual budgets for the month ended March 31, 2019
PLANNING ACTUAL
Budgeted meals quantity (q) 20 000 18 000
Revenues (£5.00q) £100 000 £90 000
Expenses:
Raw material (£2.50q) 50 000 45 000
Wages and salaries (£5 500+£0.25q) 10 500 10 000
Utilities (£2 500 + £0.05q) 3 500 3 400
Facility rent 5 000 5 500
Insurance 2 800 3 200
Fuel 2 500 2 800
Net Operating Income £25 700 £20 100
Required:
i. What is the objective of preparing a budget for Fleet Highlands Café?
ii. Prepare a report showing the company's revenue and spending variance for March?
iii. Which variances should be of concern to management? Explain.
iv. Advise the Fleet Highlands Café on what they need to do to maintain their profitability and sustainability going forward.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.