Jean Inman Registered Dietitian (RD) Domain 3 Practice Exam

To determine the food cost percentage, the formula used is:

\[ \text{Food Cost Percentage} = \left( \frac{\text{Cost of Food}}{\text{Income}} \right) \times 100 \]

In this scenario, the cost of food is $325, and the income is $865. Plugging these numbers into the formula gives:

\[ \text{Food Cost Percentage} = \left( \frac{325}{865} \right) \times 100 \]

Calculating the division:

\[ \frac{325}{865} \approx 0.3757 \]

Now, multiplying by 100 to convert it into a percentage results in:

\[ 0.3757 \times 100 \approx 37.57\% \]

Rounding this figure typically leads to a representation of around 38%. Therefore, the food cost percentage is 38%.

Understanding food cost percentage is crucial for food service management as it reflects how much of the income is spent on food, which is a key indicator of financial health in a dining operation. A lower percentage generally indicates better control over food costs relative to the total income.