Utilizing the attached income statement from last year, calculate Burger Palace\
ID: 2760196 • Letter: U
Question
Utilizing the attached income statement from last year, calculate Burger Palace's percentage profit.
The choices are:
6.0%
3.9%
1.2%
11.3%
Food
$ 1,486,250.00
Beverage
$ 271,620.00
Total Sales
1,757,870.00
$
Cost of Sales
Food
609,123.00
$
Beverage
95,152.00
$
Total Cost of Sales
704,275.00
$
Gross Profit
1,053,595.00
$
Controllable Expenses
Salaries and wages
495,123.00
$
Employee benefits
120,780.00
$
Other controllable expenses
210,600.00
$
Total Controllable Expenses
826,503.00
$
227,092.00
$
Occupancy Costs
119,425.00
$
Interest
27,060.00
$
Depreciation
60,200.00
$
Total
206,685.00
$
Restaurant Profit
20,407.00
A.6.0%
B.3.9%
C.1.2%
D.11.3%
Explanation / Answer
Percentage profit = Net income/Sales
= $20,407/$1,757,870
= 1.2%
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