percentage cost formula
Calculating Percentage Cost.Calculating the percentage cost of a product or service is an important part of running a successful business.
Melba: the food cost app to optimize the profitability of your restaurant
Discover how to optimize the profitability of your restaurant with melba
The ultimate guide to food cost restaurant
Learn more about the food cost basis and how to reduce your food cost percentage
Calculating Percentage Cost
Calculating the percentage cost of a product or service is an important part of running a successful business. Knowing the percentage cost of a product or service can help you determine the profitability of your business.
Formula for Calculating Percentage Cost
The formula for calculating percentage cost is as follows:
- Percentage Cost = (Cost of Goods Sold / Revenue) x 100
The cost of goods sold is the total cost of the product or service, including materials, labor, and overhead. Revenue is the total amount of money received from the sale of the product or service.
Example of Calculating Percentage Cost
Let's say you sell a product for $100. The cost of goods sold for that product is $50. The percentage cost of the product would be calculated as follows:
- Percentage Cost = ($50 / $100) x 100 = 50%
This means that the cost of the product is 50% of the total revenue.
Conclusion
Calculating the percentage cost of a product or service is an important part of running a successful business. Knowing the percentage cost of a product or service can help you determine the profitability of your business.