Question

If the revenue for the week is $2000 and the labor cost consists of two workers earning eight dollars per hour who work 40 hours each what is labor cost as a percentage of revenue

Answer 1

To find the cost of labor for one worker, you multiply the wage by the number of hours worked. 

40 * 8 = 320

Because there are two workers, now you double it. 

320 * 2 = 640

To find the percentage of the revenue that this is, you do the labor cost divided by the revenue. 

640 / 2000 = 0.32

Move the decimal two places to the right to get the percentage. 

0.32 = 32%

The labor cost is 32% of the revenue.