# Boulevard Sandwiches Inc B Case Solution

Solution Id Length Case Author Case Publisher
2213 599 Words (4 Pages) E. Richard Brownlee, Luann J. Lynch Darden School of Business : UV7971
This solution includes: A Word File and An Excel File

The flexible budget for 2018 has been prepared using the planned budget of 2018. As per the planned budget, the per-unit gross sale of lunch and dinner is respectively 7.5 and 10.5 respectively. However, the actual gross sale of per unit 11 for 2018. Since, as per the planned budget, 50% of the total revenue pertains to lunch and remains for dinner. However, actually, 40% was actual for lunch and the remaining for dinner.

## Following questions are answered in this case study solution

1. Using actual 2018 data, prepare a flexible budget that reflects what each expense should have been for 2018. How do the actual compare to the flexible budget? Is it more meaningful to compare the actual to the flexible amounts or to the original budget? Why?

2. What were the factors that contributed to the difference between actual revenues and planned revenues for 2018? Analyze and quantify the impact on profit

3. Prepare a reconciliation (detailed) of the planned profit to the actual profit

4. What do the 2018 results suggest about the performance of Philips?

## Case Analysis for Boulevard Sandwiches Inc B

Therefore, in a flexible budget number of units sold is calculated by dividing the per-unit cost of lunch by 40% of the gross sales. Similarly, for dinner, the number of units sold was deducted. The variable cost was determined based on the number of units sold. Food cost, operating expenses for lunch was higher than planned. The flexible budget allows comparing the actual expenses with the budget if the budget would have made for the actual quantity.

#### 2. What were the factors that contributed to the difference between actual revenues and planned revenues for 2018? Analyze and quantify the impact on profit

Firstly, the actual average gross sale per unit of dinner was \$11 as compared to \$10.5 in the planned budget. The difference of \$0.5 allowed the actual revenues to increase. The reason for this increase could be that there is a fewer number of customers but the order quantity was high. Meaning that few customers ordered a greater amount of food thereby increasing the average gross sale per unit. Moreover, the total customer count was higher than the planned budget which also contributes to the increase in revenues. The restaurant had planned for 3,850 customers however the actual number of customers was 4,025.

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