Question

1)

Aday’s Restaurant has the following income statement:

Revenue:
Food Sales	$240,000
Beverage Sales	$86,000
Total Sales		$326,000
Cost of Sales:
Food Costs	$72,000
Beverage Costs	$15,480
Total Costs		$87,480
Gross Profit		$238,520
Expenses:
Operating	$8,000
Labor	$26,000
Miscellaneous	$4,000
Administrative	$14,000
Total Expenses	$52,000
NET PROFIT		$186,520

Calculate operating expenses as a % of sales

        

Select one:

a. 3.00%

b.

5%

c.
6.34%

d.
2.45%

2)

Aday’s Restaurant has the following income statement:

Revenue:
Food Sales	$240,000
Beverage Sales	$86,000
Total Sales		$326,000
Cost of Sales:
Food Costs	$72,000
Beverage Costs	$15,480
Total Costs		$87,480
Gross Profit		$238,520
Expenses:
Operating	$8,000
Labor	$26,000
Miscellaneous	$4,000
Administrative	$14,000
Total Expenses	$52,000
NET PROFIT		$186,520

Calculate labor expenses as a % of sales

        

Select one:

a. 3.00%

b.

10.00%

c.
7.98%

d.
2.45%

3)

Aday’s Restaurant has the following income statement:

Revenue:
Food Sales	$240,000
Beverage Sales	$86,000
Total Sales		$326,000
Cost of Sales:
Food Costs	$72,000
Beverage Costs	$15,480
Total Costs		$87,480
Gross Profit		$238,520
Expenses:
Operating	$8,000
Labor	$26,000
Miscellaneous	$4,000
Administrative	$14,000
Total Expenses	$52,000
NET PROFIT		$186,520

Calculate miscellaneous expenses as a % of sales

        

Select one:

a. 3.00%

b.

10.00%

c.
1.23%

d.
2.45%

Answer 1

1) Option D : 2.45%.

Operating Expenses as a percentage of Sales means how much the operating expenses are include in the total sales = Operating Expenses / Total Sales = $8000 / $326000 = 0.02453 = 2.45%.

2) Option C : 7.98%.

Labour Expenses as a percentage of Sales means how much the Labour expenses are include in the total sales = Labour Expenses / Total Sales = $26000 / $326000 = 0.07975 = 7.98%.

3) Option C : 1.23%.

Miscellaneous Expenses as a percentage of Sales means how much the Miscellaneous expenses are include in the total sales = Miscellaneous Expenses / Total Sales = $4000 / $326000 = 0.01227 = 1.23%.