Question
Ericka Tuller is the manager of the Oasis restaurant. Ericka is compiling and analyzing a portion of her monthend income statement. Shes most interested in
Ericka Tuller is the manager of the Oasis restaurant. Ericka is compiling and analyzing a portion of her monthend income statement. Shes most interested in the restaurants prime cost percentage because, if prime cost is less than 60% for the month, Ericka will receive a $1000 bonus.
Complete the portion of Erickas income statement presented below. Round all percentages to the nearest hun-dredths place (i.e., 40.25%). Then answer the questions that follow:
a. What was the amount of the operations total sales for the month?
b. What was the operations total cost of sales percentage for the month?
c. What was the amount spent by the operation for employee benefits this month?
d. What was the operations total labor cost percentage for the month?
e. Should Ericka receive her $1000 bonus this month?
Oasis Restaurant Partial P&L: Sales and Prime Cost This Month % SALES Food Beverage Total Sales $81,500 $19,300 80.85 19.15 100.00 COST OF SALES Food Beverage Total Cost of Sales $25,250 $4,200 $29,450 30.98 21.76 4.91 LABOR Management Staff Employee Benefits Total Labor Cost $4,950 $16,452 16.32 6.27 $27,727 PRIME COSTStep by Step Solution
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