According to the Specialty Coffee Association, the cost of a $1.80 latte includes $0.24 for the coffee bean and milk, $0.19 for dishes and equipment, $0.45 for rent, $0.17 for marketing and administrative costs, $0.67 for labor, and $0.08 profit. Find each of these amounts as a percentage of the cost of a latte to the nearest tenth of a percent.
A) dishes and equipment: 10.6% coffee bean and milk: 24.0%
Marketing: 17.0%
Labor: 67.0%
Profit: 8.0%
Rent: 45.0%
B) dishes and equipment: 0.1% coffee bean and milk: 0.1%
Marketing: 0.1%
Labor: 0.4%
Profit: 0.0%
Rent: 0.3%
C) dishes and equipment: 10.6% coffee bean and milk: 86.7%
Marketing: 90.6%
Labor: 62.8%
Profit: 95.6%
Rent: 75.0%
D) dishes and equipment: 13.3% coffee bean and milk: 10.6%
Marketing: 9.4%
Labor: 37.2%
Profit: 4.4%
Rent: 25.0%
E) dishes and equipment: 10.6% coffee bean and milk: 13.3%
Marketing: 9.4%
Labor: 37.2%
Profit: 4.4%
Rent: 25.0%

Question

Quizplus · Accepted Answer

To find the percentage of each cost component of the latte, divide the cost of each component by the total cost of the latte ($1.80) and multiply by 100. For example, for coffee bean and milk: ($0.24 / $1.80) * 100 = 13.3%. Applying this calculation to each component yields the percentages listed in option E.

According to the Specialty Coffee Association, the Cost of a $1.80