Question

What formula will disclose the percent of food and beverage income spent on payroll?

Answer 1

To find the payroll percentage of food and beverage income, divide the total payroll expenses by the total food and beverage income and multiply the result by 100.

Step-by-step explanation:

To disclose the percent of food and beverage income spent on payroll, you would use the following formula:

(Total Payroll Expenses / Total Food and Beverage Income) x 100 = Payroll Percentage

This calculation will give you the percentage of income that is going towards payroll expenses. For instance, if a restaurant has $300,000 in food and beverage income and $90,000 in payroll expenses, the calculation would be:

$90,000 (payroll expenses) / $300,000 (food and beverage income) = 0.3

0.3 x 100 = 30% (payroll percentage)

This means that 30% of the restaurant's food and beverage income is being spent on payroll.