From the sample operating statement (Figure 8-4),

calculate the labor cost percentage by taking total labor cost and dividing by total sales x 100. Remember the formula:

Transcribed Image Text:

DESCRIPTION % STUDENT UNION % TOTAL % SALES FOOD REGULAR FOOD SPECIAL FUNCTIONS PIZZA HUT EXPRESS BANQUET & CATERING CONFERENCE BEER SNACK BAR A LA CARTE CAFE ** TOTAL SALES PRODUCT COST BAKED GOODS $ 951,178 40,000 $ 100,000 200,000 160,000 $ 951,178 40,000 100,000 200,000 160,000 80,000 300,000 80,000 30,000 60,000 60,000 $ 1,411,178 $ 480,000 100.0% $ 1,891,178 100.0% $ BEVERAGE 9,420 10,000 $ 4,700 $ 14,120 8,000 18,000 MILK & ICE CREAM 11,982 2,819 14,801 GROCERIES 131,000 49,420 180,420 FROZEN FOOD 76,045 37,221 113,266 MEAT, SEAFOOD, EGGS, & CHEESE 129,017 48,000 177,017 PRODUCE 65,500 26,000 91,500 MISCELLANEOUS 0 COLD DRINK 0 0 0 **TOTAL PRODUCT COST $ 432,964 $ 176,160 36.7% $ 609,124 32.2% $ 581,000 $ 154,000 $ 735,000 LABOR COST WAGES LABOR OTHER EMPLOYEES BENEFITS + PAYROLL TAXES MANAGEMENT BENEFITS WAGE ACCRUALS ** TOTAL LABOR COST FOOD OPERATING COST- 101,500 124,794 58,320 545,000 50,657 156,000 175,451 6,000 64,320 0 0 $ 865,614 $ 265,157 55.2% $1,130,771 59.8% CONTROLLABLE CLEANING SUPPLIES $ 24,000 $ PAPER SUPPLIES 9,000 6,000 46,000 $ 30,000 55,000 EQUIPMENT RENTAL 0 GUEST SUPPLIES 7,000 PROMOTIONS 4,500 SMALL EQUIPMENT 35,000 2,500 5,000 40,000 0 BUSINESS DUES & MEMBERSHIP 3,000 VEHICLE EXPENSE 3,000 4,300 TELEPHONE 3,600 700 $ 22,000 17,000 $ 5,000