A restaurant's food cost is $8000 per month. If the average meal costs $20, and food cost should be 35% of revenue, how many meals must they sell?
Answer
1143 meals
How to solve it
1
Food cost: $8000
2
Food cost should be: 35% of revenue
3
So revenue = $8000 ÷ 0.35 ≈ $22,857
4
Meals = $22,857 ÷ $20 ≈ 1143 meals
Hints
Calculate required revenue
Divide revenue by meal price