Question

1 vending guest equivalent = $1.75 sales”. The information from revenue and expenses are also recorded and presented below in an Income Statement.

Ruby Falls Medical Center (RFMC) Foodservice Department Income Statement - May 20XX
	Operating Areas
	Patient Foodservice	Employee Cafeteria	Visitor Cafe	Vending	Catering	TOTAL
Income	- -	$ 272,244	$ 47,725	$ 21,810	$ 45,725	$ 387,504
# Guests	- -	55,611	5,857	- -	5,324
Patient Census	44,255
Expenses
Food
Meat	$30,301	$39,590	$5,088	$1,803	$5,389	$82,171
Dairy	$21,032	$14,570	$1,890	$938	$2,002	$40,432
Grocery	$17,794	$15,569	$2,035	$1,001	$2,156	$38,555
Fresh/Frozen	$21,115	$18,296	$2,326	$721	$1,463	$43,921
Bakery	$14,571	$16,248	$1,894	$936	$1,694	$35,343
Supplements	$11,822	$0	$0	$0	$0	$11,822
Other	$6,940	$8,542	$1,615	$1,804	$1,548	$20,449
Total	124,895	112,815	14,848	7,203	14,252	272,693
Labor
Salaried						$142,185
Hourly	$175,469	$157,390	$20,437	$3,770	$16,314	$373,380
Miscellaneous
Cleaning Supplies	$400	$425	$187	$90	$176	$1,278
Paper	$1,260	$1,629	$405	$250	$598	$4,142
Repairs/Maint	$2,256	$0	$0	$0	$0	$2,256
Office Supplies	$230	$169	$97	$0	$83	$579
China/silver	$382	$258	$0	$0	$0	$640
Books/Mag	$59	$0	$0	$0	$25	$84
Other	$479	$258	$84	$25	$149	$995
Total Expenses	305,430	272,944	36,058	11,338	31,497	798,232

1. Which area has the largest Food Cost Percentage? and how do you find the food cost percentage for each one

Answer 1

Food cost percentage is calculated a percentage of the cost spent on spent as a part of Revenue. For this sum I have compiled the data as given in the question. Except for Patient Food service, all percentages are derived on Sales. For Patient Food service i have taken the percentage on total expense since we do not have a revenue figure. Food costs are totals of the food section of expenses as given in the table this includes "other" as well as it may refer to costs incurred indirectly to prepare food.

Refer to the table below for the solution:

Pariculiars	Departments
	Patient Food Service	Employee Cafetaria	Visitor Café	Vending	Catering
Income	$ 305,430.00	$ 272,244.00	$ 47,725.00	$ 21,810.00	$ 45,725.00
Food Costs	$ 124,895.00	$ 112,815.00	$ 14,848.00	$   7,203.00	$ 14,252.00
Food Cost Percentage	40.89%	41.44%	31.11%	33.03%	31.17%

From the table above we can conclude that Employee Cafetaria is a department that incurred the highest Food Cost Percentage.