The costs in a nearby restaurant, expressed as percentages of sales, are as follows:
Fixed costs 30.0%
Directly variable costs 25.0%
If the restaurant is to show an 8% profit, semivariable costs as a percentage of sales must be:

Question

Quizplus · Accepted Answer

To achieve an 8% profit, the total costs must be 92% of sales. Fixed costs are 30% and directly variable costs are 25%, totaling 55%. Therefore, semivariable costs must be 37% (92% - 55%) of sales.

The Costs in a Nearby Restaurant, Expressed as Percentages of Sales