Question

QUESTION 1 of 10: The meatloaf sold 250 units at a cost of $500 and sold at $10 per plate. The grilled chicken sold 210 units at a cost of

$546 and sold at $13 per plate. Which item has the higher food cost percentage?

Answer 1

Both the meatloaf and the grilled chicken have roughly the same food cost percentage of approximately 20%. Therefore, neither item has a higher food cost percentage.

Step-by-step explanation:

To determine which item has the higher food cost percentage, we need to calculate the food cost percentage for both the meatloaf and the grilled chicken. The food cost percentage is calculated by dividing the total cost of the food by the total sales and multiplying by 100.

For the meatloaf:
Food Cost Percentage for Meatloaf = (Total Cost of Meatloaf / Total Sales from Meatloaf) × 100 = ($500 / (250 units × $10)) × 100 = (500 / 2500) × 100 = 20%

For the grilled chicken:
Food Cost Percentage for Grilled Chicken = (Total Cost of Grilled Chicken / Total Sales from Grilled Chicken) × 100 = ($546 / (210 units × $13)) × 100 = (546 / 2730) × 100 ≈ 20%

After calculating the percentages, we can see that both items have approximately the same food cost percentage. Therefore, neither item has a higher food cost percentage than the other; they are equal.