A)

In your restaurant, you made

$10,000 in food sales

$2,500 in beverage sales

__________

$12,500 Total

1. If you generally run your food cost at 30%, how much did you pay for the food you used in the restaurant for that night?

2. If you usually run the beverage cost at about 25%, how much did the beverages cost for that night?

3. If the total labor cost is 28 percent, how much money is that? And how much does it leave for other costs and profit?

B) List at least 3 important Operating ratios.

C) Explain the term "Fixed cost" and provide an example.

D) Explain the term "Variable cost' and provide an example.

E)

In the last week, your operation showed:

$3,000 in labor costs

$2,000 in overhead

$ 4,000 in food cost.

What is your break-even point, how much must your restaurant make this week to break even? How will you calculate profit?