Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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%