Question

If the Revenue for the week is $2000, and labor cost consists of two workers earning $8 per hour who work 40 hours each, what is labor cost as a percentage of Revenue?

Answer 1

So,

All you have to do is find the total labor cost and put it over the revenue.

We have two workers each earning $8/hr. (lousy), and they work 40 hrs./week.

2 * $8 = $16/hr.

$16/hr. * 40 hrs. = $640


`(640)/(2000)`

Cross out zeros.

`(64)/(200)`

Simplify.

`(2^6)/(2^35^2)`

`(2^3)/(5^2)`

`(8)/(25)`

Convert the denominator to 100.

`(8)/(25) * (4)/(4) = (32)/(100)`

`(32)/(100)`
=
32%

The labor cost is 32% of the revenue.