Finance worded question

Question

Food cost for a banquet of 100 covers is estimated to be 205.05 and labour cost 141.45. Overheads are to be allowed for at 20% of sale, and is desired to make net profit of 10%. Find out the charge per cover, which will be necessary

Answer 1

the total cost = $202.05 + $141.45 = $343.50 for 100 people

 

now you have to figure out 20% to add to the total. the calculation is 20% x $343.50/100% = $6870/100=$68.70

 

adding this to total is $343.50+ $68.70 = $412.20, now we have figure out 10% profit which is 412.20 x 10%/100%=$41.22

 

now add this $412.20 + $41.22 = $453.42 this is total for all of the costs

 

to figure out cover cost $453.42/100 = $4.50 per person