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Total operating expenses Operating income Required: $(6,742) $(5,695) $805 $290 a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place. Chipotle Mexican Grill, Inc. Operating Income. For the Years Ended December 31 (in thousands) Year 2 Amount Year 2 Year 1 Year 1 Percent Amount Percent Revenues: Food and beverage $7,457 % $5,921 % Delivery service 90 % 64 % Total revenues $7,547 % $5,985 % Restaurant operating costs: Food, beverage, packing $(2,309) % $(1,933) Labor (1,918) % (1,593) % Occupancy (rent) (416) % (388) 0/a Marketing, utilities, other (1,197) % (1,030) % General and administrative (607) % (466) % Depreciation (255) % (238) 9 Miscellaneous expenses (40) % (47) % Total operating expenses $(6,742) % $(5,695) % Operating income $805 % $290 % b. Based on the calculations above, which of the following statements are correct? 1. Operating income as a percent of revenues increased from Year 1 to Year 2. 2. All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly. 3. The biggest percentage decrease in operating expenses was in food, beverage, packing expense. 4. Overall, Chipotle Mexican Grill improved its operations from Year 1 to Year 2 by increasing revenues, decreasing total operating expenses, and increasing its profitability. 1, 2 and 3 2, 3 and 4 1, 3 and 4 All of the above Assignment Score: 66.23% Check My Work uses remaining.

Total operating expenses Operating income Required: $(6,742) $(5,695) $805 $290 a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place. Chipotle Mexican Grill, Inc. Operating Income. For the Years Ended December 31 (in thousands) Year 2 Amount Year 2 Year 1 Year 1 Percent Amount Percent Revenues: Food and beverage $7,457 % $5,921 % Delivery service 90 % 64 % Total revenues $7,547 % $5,985 % Restaurant operating costs: Food, beverage, packing $(2,309) % $(1,933) Labor (1,918) % (1,593) % Occupancy (rent) (416) % (388) 0/a Marketing, utilities, other (1,197) % (1,030) % General and administrative (607) % (466) % Depreciation (255) % (238) 9 Miscellaneous expenses (40) % (47) % Total operating expenses $(6,742) % $(5,695) % Operating income $805 % $290 % b. Based on the calculations above, which of the following statements are correct? 1. Operating income as a percent of revenues increased from Year 1 to Year 2. 2. All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly. 3. The biggest percentage decrease in operating expenses was in food, beverage, packing expense. 4. Overall, Chipotle Mexican Grill improved its operations from Year 1 to Year 2 by increasing revenues, decreasing total operating expenses, and increasing its profitability. 1, 2 and 3 2, 3 and 4 1, 3 and 4 All of the above Assignment Score: 66.23% Check My Work uses remaining.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 11BEA
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Total operating expenses Operating income Required: $(6,742) $(5,695) $805 $290 a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place. Chipotle Mexican Grill, Inc. Operating Income. For the Years Ended December 31 (in thousands) Year 2 Amount Year 2 Year 1 Year 1 Percent Amount Percent Revenues: Food and beverage $7,457 % $5,921 % Delivery service 90 % 64 % Total revenues $7,547 % $5,985 % Restaurant operating costs: Food, beverage, packing $(2,309) % $(1,933) Labor (1,918) % (1,593) % Occupancy (rent) (416) % (388) 0/a Marketing, utilities, other (1,197) % (1,030) % General and administrative (607) % (466) % Depreciation (255) % (238) 9 Miscellaneous expenses (40) % (47) % Total operating expenses $(6,742) % $(5,695) % Operating income $805 % $290 % b. Based on the calculations above, which of the following statements are correct? 1. Operating income as a percent of revenues increased from Year 1 to Year 2. 2. All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly. 3. The biggest percentage decrease in operating expenses was in food, beverage, packing expense. 4. Overall, Chipotle Mexican Grill improved its operations from Year 1 to Year 2 by increasing revenues, decreasing total operating expenses, and increasing its profitability. 1, 2 and 3 2, 3 and 4 1, 3 and 4 All of the above Assignment Score: 66.23% Check My Work uses remaining.
Transcribed Image Text:Total operating expenses Operating income Required: $(6,742) $(5,695) $805 $290 a. Prepare a vertical analysis of the operating income for the two years. Round percentages to one decimal place. Chipotle Mexican Grill, Inc. Operating Income. For the Years Ended December 31 (in thousands) Year 2 Amount Year 2 Year 1 Year 1 Percent Amount Percent Revenues: Food and beverage $7,457 % $5,921 % Delivery service 90 % 64 % Total revenues $7,547 % $5,985 % Restaurant operating costs: Food, beverage, packing $(2,309) % $(1,933) Labor (1,918) % (1,593) % Occupancy (rent) (416) % (388) 0/a Marketing, utilities, other (1,197) % (1,030) % General and administrative (607) % (466) % Depreciation (255) % (238) 9 Miscellaneous expenses (40) % (47) % Total operating expenses $(6,742) % $(5,695) % Operating income $805 % $290 % b. Based on the calculations above, which of the following statements are correct? 1. Operating income as a percent of revenues increased from Year 1 to Year 2. 2. All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly. 3. The biggest percentage decrease in operating expenses was in food, beverage, packing expense. 4. Overall, Chipotle Mexican Grill improved its operations from Year 1 to Year 2 by increasing revenues, decreasing total operating expenses, and increasing its profitability. 1, 2 and 3 2, 3 and 4 1, 3 and 4 All of the above Assignment Score: 66.23% Check My Work uses remaining.
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