If forty entrees of fish cost $2.00 each and generated total sales of $240.00, what is the food cost percentage?

To find the food cost percentage, you first need to calculate the total cost of the food and then compare that to the total sales.

In this case, you have forty entrees of fish, each costing $2.00. Therefore, the total food cost can be calculated as follows:

Total food cost = Number of entrees × Cost per entree

Total food cost = 40 × $2.00 = $80.00

Next, you look at the total sales, which is given as $240.00.

The food cost percentage is then calculated using the formula:

Food cost percentage = (Total food cost / Total sales) × 100

Plugging in the numbers:

Food cost percentage = ($80.00 / $240.00) × 100

Food cost percentage = 0.3333 × 100 = 33.33%

When rounding this to the nearest whole percentage, it results in 33%, making it the correct answer.

This indicates that about one-third of the total sales revenue is going towards the cost of the food, which is a crucial metric for assessing the profitability of the menu items. Understanding food cost percentages is important in managing food service operations effectively, as it helps in budgeting and