Answered

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Your labor cost % is 25 %. What does this mean?

a. For every $1.00 in total expenses, you have $25 in labor cost.
b. It costs $25 on average to pay each employee for 1 hour.
c. 25% of your sales went towards labor expense.
d. You used up 25% of your labor this period.

Sagot :

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Answer:

c. 25% of your sales went towards labor expense.

Explanation:

The labor cost percentage (%) represents the proportion of a company's total sales revenue that is spent on labor costs, such as wages, salaries, and benefits for employees.

In this case, a labor cost percentage of 25% means that for every $1.00 in total sales revenue, $0.25 (or 25 cents) is spent on labor expenses. This indicates that 25% of the company's total sales revenue is used to cover the labor costs.

The other options are not correct:

a. This would mean that for every $1.00 in total expenses, there is $0.25 in labor cost, which is not the same as the labor cost percentage.

b. The labor cost percentage does not represent the average cost to pay each employee per hour.

d. The labor cost percentage does not represent the proportion of labor used up during the period, but rather the proportion of sales revenue spent on labor.

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