Question

Your goal for the month was to keep Cost of Goods Sold under 25% of revenues for food and drinks. Your restaurant sold $36,889 of food on costs of $11,507. Your bar sold $14,887 in drinks on costs of $1,097. Did you meet your goal?

Answer 1

Answer: Yes, the goal was met.

Step-by-step explanation:

Given

Total sales = Food sales + Drinks sales

=36889+14887

=$51776

Total Cost of Goods sold= Food cost + Drinks cost

=11507+1097

=$12604

Percentage of COGS on revenue

=COGS/Total sales revenue x 100

=(12604/51776) x 100

=(0.2434) x 100

=24.34%

The Cost of goods sold was 24.34% which is less than 25% objective. Hence the the goal of the month was met.