Financial data for a cafeteria shows the following: Income from sales = $12,800, Food costs = $5,300, Number of meals served = 2,403. What is the food cost percentage for the operation?

Financial data for a cafeteria shows the following: Income from sales = $12,800, Food costs = $5,300, Number of meals served = 2,403. What is the food cost percentage for the operation?

• A. 41.4%
• B. 45.3%
• C. 58.6%
• D. 70.7%

Answer: (A)

To determine the food cost percentage for the operation, the following formula can be applied: Food Cost Percentage = (Food Costs / Income from Sales) x 100 In this case, the food costs amount to $5,300, and the total income from sales is $12,800. By substituting these values into the formula, we have: Food Cost Percentage = ($5,300 / $12,800) x 100 Calculating this gives: Food Cost Percentage = 0.4140625 x 100 = 41.40625% When rounded, this figure translates to approximately 41.4%. This percentage reflects the portion of income spent on food costs, helping evaluate the cost efficiency of the cafeteria operation. A lower food cost percentage generally indicates better management of food expenses relative to income generated from sales.

To determine the food cost percentage for the operation, the following formula can be applied:

Food Cost Percentage = (Food Costs / Income from Sales) x 100

In this case, the food costs amount to $5,300, and the total income from sales is $12,800. By substituting these values into the formula, we have:

Food Cost Percentage = ($5,300 / $12,800) x 100

Calculating this gives:

Food Cost Percentage = 0.4140625 x 100 = 41.40625%

When rounded, this figure translates to approximately 41.4%. This percentage reflects the portion of income spent on food costs, helping evaluate the cost efficiency of the cafeteria operation. A lower food cost percentage generally indicates better management of food expenses relative to income generated from sales.