Question

Part 1 : Food Cost Ratio= Food Cost/Food Sales Labor Cost Ratio = Labor Cost/Food Sales Contribution Margin (profit) = Total Sales--Total Costs Calculate: Labor Cost is $5000.00 Food Cost is $5500.00 Food Sales = $20000.00 What is the Food cost ratio? ______________________ What is the Labor cost ratio? ______________________ What is the Total Cost ratio? ______________________ What is the Contribution Margin (profit) for the food cost? ________________ What is the range for a good overall food cost for a restaurant operation? ________________ Part 2: Beverage Cost or Pour Cost = Beverage Cost/Bar Sales Calculate: Beverage Cost is $1500.00 Beverage Sales = $6500.00 What is the beverage cost ratio? ______________________ What is the range for a good overall liquor cost? _____________

Answer 1

Answer:

Food cost ratio=0,275

Labor cost ratio= 0,25

Total Cost ratio=0,525

Contribution Margin (profit) for the food cost= 9500

Range for a good overall food cost for a restaurant operation=28% - 35%

Part 2:

beverage cost ratio=0.23

range for a good overall liquor cost= 18%-23%

Explanation:

Food cost ratio=Food Cost/Food Sales

=$5500.00/$20000.00=0,275

Labor Cost Ratio = Labor Cost/Food Sales

$5000.00/$20000.00=0,25

Total Cost ratio=  ($5500.00+$5000.00)/$20000.00= 0,525

Contribution Margin (profit) for the food cost? Total Sales--Total Costs

=$20000-($5500.00+$5000.00)=9500

What is the range for a good overall food cost for a restaurant operation?

28 % to 35% range

Part 2:

Beverage cost ratio? Beverage Cost/Bar Sales = $1500.00/$6500.00

=0.23

Range for a good overall liquor cost? 18% to 23% range