What is the food cost percentage if the cost of food is $325 and the income is $865?

What is the food cost percentage if the cost of food is $325 and the income is $865?

• A. 38%
• B. 36%
• C. 34%
• D. 32%

Answer: (A)

To determine the food cost percentage, the formula used is: \[ \text{Food Cost Percentage} = \left( \frac{\text{Cost of Food}}{\text{Income}} \right) \times 100 \] In this scenario, the cost of food is $325, and the income is $865. Plugging these numbers into the formula gives: \[ \text{Food Cost Percentage} = \left( \frac{325}{865} \right) \times 100 \] Calculating the division: \[ \frac{325}{865} \approx 0.3757 \] Now, multiplying by 100 to convert it into a percentage results in: \[ 0.3757 \times 100 \approx 37.57\% \] Rounding this figure typically leads to a representation of around 38%. Therefore, the food cost percentage is 38%. Understanding food cost percentage is crucial for food service management as it reflects how much of the income is spent on food, which is a key indicator of financial health in a dining operation. A lower percentage generally indicates better control over food costs relative to the total income.

To determine the food cost percentage, the formula used is:

[ \text{Food Cost Percentage} = \left( \frac{\text{Cost of Food}}{\text{Income}} \right) \times 100 ]

In this scenario, the cost of food is $325, and the income is $865. Plugging these numbers into the formula gives:

[ \text{Food Cost Percentage} = \left( \frac{325}{865} \right) \times 100 ]

Calculating the division:

[ \frac{325}{865} \approx 0.3757 ]

Now, multiplying by 100 to convert it into a percentage results in:

[ 0.3757 \times 100 \approx 37.57% ]

Rounding this figure typically leads to a representation of around 38%. Therefore, the food cost percentage is 38%.

Understanding food cost percentage is crucial for food service management as it reflects how much of the income is spent on food, which is a key indicator of financial health in a dining operation. A lower percentage generally indicates better control over food costs relative to the total income.