A restaurant wastes $600 each month because of poor purchasing practices. If the operation's budget targets a profit of 15 percent of revenues, how much additional revenue must be generated by year's end to recoup the $600 of wasted resources each month?

Question

Quizplus · Accepted Answer

To recoup $600 wasted each month for 12 months, the restaurant needs to cover $7,200 in total. With a profit target of 15%, the additional revenue needed is $7,200 / 0.15 = $48,000.

A Restaurant Wastes $600 Each Month Because of Poor Purchasing