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%

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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