Question

A caterer receives an order for 25 sandwiches, 1 gallon of soup and 3 dozen cookies.

His food cost equals 28% and his labor and miscellaneous costs is 32%. What
percentage is his profit margin? a. 17%
b. 40%
c. 33%
d. 51%​

Answer 1

b. 40%

Explanation:

The price he sells at is 100%.

His costs are 28% and 32%.

Total costs = 28% + 32% = 60%

His profit is

100% - 60% = 40%

Answer: b. 40%