If the revenue for the week is $2000, and labor cost consists of two workers earning $8 per hour who work 40 hours each, what is labor cost as a percentage of revenue?

So,

All you have to do is find the total labor cost and put it over the revenue.

We have two workers each earning $8/hr. (lousy), and they work 40 hrs./week.

2 * $8 = $16/hr.

$16/hr. * 40 hrs. = $640



Cross out zeros.


Simplify.




Convert the denominator to 100.


=
32%

The labor cost is 32% of the revenue.