Utilizing the attached income statement from last year, calculate Burger Palace\
ID: 2464145 • Letter: U
Question
Utilizing the attached income statement from last year, calculate Burger Palace's labor cost
My options are( A. 31.5% , B. 46%, C. 6.9%, D. 28.2 % )
Sales
Food
1,486,250.00
$
Beverage
271,620.00
$
Total Sales
1,757,870.00
$
Cost of Sales
Food
609,123.00
$
Beverage
95,152.00
$
Total Cost of Sales
704,275.00
$
Gross Profit
1,053,595.00
$
Controllable Expenses
Salaries and wages
495,123.00
$
Employee benefits
120,780.00
$
Other controllable expenses
210,600.00
$
Total Controllable Expenses
826,503.00
$
227,092.00
$
Occupancy Costs
119,425.00
$
Interest
27,060.00
$
Depreciation
60,200.00
$
Total
206,685.00
$
Restaurant Profit
20,407.00
Explanation / Answer
Solution.
Calculation for labor cost.
Labor cost = Controllable Expenses Salaries and wages / Total Sales
= 495,123.00 / 1,757,870.00 = 28.2%
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