Question

Given the following data, what is the dollar amount of beverage sales? Food cost: $175,000 Beverage cost: $50,000 Total sales: $800,000 Sales mix: Food sales = 80 percent of total sales Beverage sales = 20 percent of total sales

Answer 1

$160,000

Step-by-step explanation:

If the beverage sales represent 20% of the total sales, to find out the dollar amount of beverage sales, all we need to do is multiply the total sales x 20%:

beverage sales = $800,000 x 20% = $160,000

food sales = total sales - beverage sales = $800,000 - $160,000 = $640,000