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

1) First, you need to calculate the total labor cost: 2 workers * $8/(hour) * 40 hour / worker = $640. 2) Second, now you can calculate how much percent is 640 of the revenue, 2000: [640 / 2000] * 100 = 32%. 3) And the answer is that the labor cost is 32% of the revenue.