Question

Given:

Cost of food used $ 26,050
Cost of employee meals $ 500
Promotional meals $ 300


Then, the cost of food sold is equal to:___________.

Answer 1

The cost of food sold is calculated by subtracting the cost of employee meals and promotional meals from the cost of food used. For the given amounts, the cost of food sold is $25,250.

Step-by-step explanation:

To calculate the cost of food sold, one must consider all expenses associated with food that was actually sold to customers. The initial information given in this question includes the cost of food used ($26,050), the cost of employee meals ($500), and promotional meals ($300). These expenses have to be taken into account separately since they do not contribute to the cost of food sold. Therefore, the cost of food sold would be the total cost of food used minus the cost of employee meals and promotional meals.

The calculation is as follows:

• Cost of food used: $26,050
• Cost of employee meals: - $500
• Promotional meals: - $300

Subtract the cost of employee and promotional meals from the cost of food used:

$26,050 - $500 - $300 = $25,250

The cost of food sold is $25,250.