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

$\frac{640}{2000}$

Cross out zeros.
$\frac{64}{200}$

Simplify.
$\frac{2^6}{2^35^2}$
$\frac{2^3}{5^2}$
$\frac{8}{25}$

Convert the denominator to 100.
$\frac{8}{25} * \frac{4}{4} = \frac{32}{100}$
$\frac{32}{100}$
=
32%

The labor cost is 32% of the revenue.