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What formula do you use in the food business to figure how much over and above food cost to make profit?
Wiki User
∙ 16y ago
Theoretically you always want to keep your real food cost below 33% of your food sales. To figure out your food cost percentage you simply divide your cost of food by your food sales, then move the decimal. I aim for a 28% food cost in the hopes that it falls at or below 33% in reality. If your real food cost is below 33% and your other areas of cost are under control, you should be turning a profit.
Wiki User
∙ 16y ago
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Recent figures show that most caterers have a profit margin of?
I'm not an expert but I have a cafe and when I started my business advisor told me the average was about 65% - if you can get above that you are doing well. Just to clarify, to get your percentage profit figure, you do the following Gross takings eg £100,000 minus the money spent on Purchases £30,000 gives a gross profit of £70,000 Divide the gross profit by the gross takings and times by 100 to get your percentage profit figure - 70,000 divided by £100,000 = 0.7 times by 100 = 70%
The amount a business earns over and above what it spends for salaries and other expenses is called?
profit
What is the importance of revenue to a business?
revenue is what pays the expenses of running the business and hopefully you can even make enough revenue above expenses to make a profit
What expression can you use to figure out sale prices?
if there is a discount, you would multiply (*) by (%) of that discount. EXP: $65 15% off. use the formula above. ANSWER: $55.25
What is flow through profit?
A flow thru profit is an extra sale above budget
Formula for finding profit?
If you know your cost, then you can find the price you must charge by Multiplying the cost by 1 plus the percent of profit you want. In the Example above: Cost = $60 Required Profit = 24% 60 * 1.24 = 74.4 You must charge at least $74.40 to achieve your required profit margin. The formula for markup percentage is (Sell Price - Cost) / Sell Price. Cost = $60 Sell Price = $65 (65 - 60) / 65 = .0769 Markup Percentage is 7.69%
How do you compute gross profit?
Gross profit is the difference btwn trading revenues (i.e. sales, closing stock etc.) and trading expenses (i.e. purchases. opening stock, freight, wages, etc.) + Earned Revenues (from the sale of the usual business products or services) - Cost of Goods Sold (the direct cost of the business product or services that were sold above) -------------------------- = Gross Profit (also called Gross Margin)
How should a business deal with a customer complaint?
Should consult a business lawyer, and make a decision based on what can be predicted as an out come. If the probability is 50% or above, got to give a provision on that. But if less than that, can be enclosed but not with a figure.
What effect does the purchase of treasury stock have on net income?
Purchase of treasury stock has no effect on the net income of a business. The purchase may affect cash flow of the business. No profit or loss is claimed when shares are re-issued at above or below cost.
What is the capitalistic method of doing business?
A capitalist is the owner or co-owner of a business. As such, the capitalistic business operates in a manner to maximize profits. As with any business operation, whatever laws that happen to impact this business need to be followed lest government penalties are enforced.The above mentioned method of operation is the same with a State - owned business, with normally this caveat, and it's an important distinction. A state business should at least "break even" so to speak. If a profit is generated by unplanned circumstances, the profit is plowed back into the business, given to employees as a bonus, or added to the government's treasury.
What is equilibrium in a business?
The equilibrium in the business means that the company's after tax profit is at satisfactory level, rate of non performance assets is low, adequate depreciation has been provided for all assets of the company. Over and above, there is huge prospect for future growth of the company.
Identify and describe layer A in the figure above.?
We cannot do so without the figure
