FORMULAS

Question 1

Average Sales

Answer 1

AS = TS ÷ TNC

Average Sales = Total Sales ÷ Total No. of Covers

Question 2

Average Covers

Answer 2

Average Covers = Covers per Hour/day/server ÷ No of hour/day of operation/Servers

Question 3

Seat Turnover

Answer 3

Seat Turnover = No of customers served ÷ No. of seats

Question 4

Sales Mix

Answer 4

SM = PS ÷ TS × 100

Sales Mix = Portion Sales ÷ Total Sales × 100

Question 5

Cost per dollar of sale

Answer 5

Cost per dollar of sale = Cost ÷ Sale

Question 6

Cost Percentage (%)

Answer 6

Cost % = C ÷ S × 100

Cost Percentage (%) = Cost ÷ Sales × 100

Question 7

Sales

Answer 7

S = C ÷ Cost %

Sales = Cost ÷ Cost %

Question 8

Cost

Answer 8

C = S × Cost %

Cost = Sales × Cost %

Question 9

Sales (Cost/Volume/Profit)

Answer 9

S = VC + FC + P
S = VC + FC – L

Sales = Variable Cost + Fixed Cost + Profit
Sales = Cost of Sales + Cost of labor + Cost of overhead + Profit

Question 10

Variable Cost

VC is NOT missing

Answer 10

VC = S × VR

Variable Cost = Sales x Variable Rate

Question 11

Variable Rate

Answer 11

VR = VC ÷ S

Variable Rate = Variable Cost ÷ Sales

Question 12

Variable Cost

VC is missing

Answer 12

VC = S – CM

Variable Cost = Sales - Contribution Margin

Question 13

Contribution Margin

Answer 13

CM = S – VC

Contribution Margin = Sales – Variable Cost

Question 14

Contribution Rate

Answer 14

CR = 1 – VR

Contribution Rate = 1 – Variable Rate

Question 15

Dollar Formulas & Calculation – continuation

Answer 15

1. S = (FC + P) ÷ VR (or CR)
   Sales = (Fixed Cost + Profit) ÷ Variable Rate (or Contribution Rate)

If BE by P = O here are other formulas:

2. CR = FC + P ÷ S
   a. Contribution Rate = (Fixed Cost + Profit) ÷ Sales
3. P = (S × CR) – FC
   a. Profit = (Sales × Contribution Rate) – Fixed Cost
4. FC = (S × CR) – P
   a. Fixed Cost = (Sales × Contribution Rate) - P

Question 16

Break-even Point in Customers

Answer 16

BEP in Customers = FC ÷ Average CM

Break-even Point in Customers = Fixed Costs + Average Contribution Margin

Question 17

Number of Customers

Answer 17

Number of Customers = FC + Profit ÷ Average CM

Number of Customers = Fixed Cost + Profit ÷ Average Contribution Margin