Business Stats/Information Systems Excel Checking the work I've done!!

Momma’s Pizzeria “pizza so good, makes you wanna slap yo momma”

Some interesting developments have occurred since our last contact.

1. After the tax commission’s last meeting, the business tax tables, along with the tax rates, have

changed.

Effective immediately, the following changes have occurred and need to be implemented in your cash proforma analysis:

· the tax rate has increased from 23% to 28% in those situations where income before taxes is greater than or equal to $25,000.

· the tax rate has increased from 13% to 18% in those situations where income before taxes is less than $25,000.

2. Additionally, one of my newly hired employees has “squealed” to the Department of Labor regarding my proposed hourly wage. I have been notified by the Department of Labor that the hourly minimum wage is $7.50 per hour. To pay an employee less constitutes a labor violation with a possible fine of $1,000 per occurrence.

Therefore, please make the appropriate change to the hourly wage rate…..(when I find out who squealed, they’re gone).

3. I haven’t even opened the diner yet and already the price of cheese has increased thereby affecting my cost of goods for both pizza and salads.

Cost of goods for this item has increased by $.07. My new cost of goods for pizza is now $7.22 and $1.30 for salads.

In order to compensate for these changes, I’ll have to increase my proposed selling price for pizza to $10.50 and salads to $3.75.

4. Lastly, I greatly underestimated the number of workers I will need for both the workweek (Tue – Fri) and the weekends (Sat – Sun). I find that I will need a total of 4 x hourly employees for the workweek and 5 x hourly employees for the weekend.

Please incorporate all these changes into your analysis prior to submitting the cash proforma analysis.