In the last quarter an operation had management labor costs of $20,000, staff labor costs of $80,000 and employee benefits costs of $30,000. The operation achieved a 25 percent total labor cost in the last quarter. How much revenue did the operation generate in the last quarter?

Question

Quizplus · Accepted Answer

The total labor cost is the sum of management labor costs, staff labor costs, and employee benefits costs, which is $20,000 + $80,000 + $30,000 = $130,000. Since the total labor cost represents 25 percent of the revenue, we can set up the equation: $130,000 = 25% of Revenue. Solving for Revenue, we get Revenue = $130,000 / 0.25 = $520,000.

In the Last Quarter an Operation Had Management Labor Costs