Part 1 : food cost ratio= food cost/food sales labor cost ratio = labor cost/food sales contribution margin (profit) = total sales--total costs calculate: labor cost is $5000.00 food cost is $5500.00 food sales = $2.00 what is the food cost ratio? what is the labor cost ratio? what is the total cost ratio? what is the contribution margin (profit) for the food cost? what is the range for a good overall food cost for a restaurant operation? part 2: beverage cost or pour cost = beverage cost/bar sales calculate: beverage cost is $1500.00 beverage sales = $6500.00 what is the beverage cost ratio? what is the range for a good overall liquor cost?

Food cost ratio=0,275

Labor cost ratio= 0,25

Total Cost ratio=0,525

Contribution Margin (profit) for the food cost= 9500

Range for a good overall food cost for a restaurant operation=28% - 35%

Part 2:

beverage cost ratio=0.23

range for a good overall liquor cost= 18%-23%

Explanation:

Food cost ratio=Food Cost/Food Sales

=$5500.00/$20000.00=0,275

Labor Cost Ratio = Labor Cost/Food Sales

$5000.00/$20000.00=0,25

Total Cost ratio=  ($5500.00+$5000.00)/$20000.00= 0,525

Contribution Margin (profit) for the food cost? Total Sales--Total Costs

=$20000-($5500.00+$5000.00)=9500

What is the range for a good overall food cost for a restaurant operation?

28 % to 35% range

Part 2:

Beverage cost ratio? Beverage Cost/Bar Sales = $1500.00/$6500.00

=0.23

Range for a good overall liquor cost? 18% to 23% range

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