Actual hours worked by the staff at the Steakhouse Restaurant exceeded scheduled labor hours by an average of 15 hours a week. If the average hourly wage for staff is $7 and the budgeted profit margin is 10 percent, how much additional revenue must be generated during the year to cover the unscheduled increase in labor costs?

Question

Quizplus · Accepted Answer

The additional revenue must be 10 times the additional labor costs. The additional labor costs are 15 hours per week times 52 weeks per year times $7 per hour = $5,460. So the additional revenue must be $5,460 times 10 = $54,600.

Actual Hours Worked by the Staff at the Steakhouse Restaurant