Question

1) Aday’s Restaurant has the following income statement: Revenue:    Food Sales                         

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%

Homework Answers

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%.

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