Total labor cost is $3,150 and total sales are $9,000. What is the labor cost percentage?

Total labor cost is $3,150 and total sales are $9,000. What is the labor cost percentage?

• A. 30%
• B. 35%
• C. 40%
• D. 25%

Answer: (B)

Labor cost percentage shows how much of each dollar in sales goes to labor. To find it, divide total labor cost by total sales and multiply by 100. 3,150 ÷ 9,000 = 0.35, which is 35%. So the labor cost percentage is 35%. If you check the other possibilities, a 30% rate would correspond to 2,700 in labor cost; 40% would be 3,600; 25% would be 2,250. They don’t match the given labor cost, so 35% is correct. This metric helps you gauge staffing efficiency and compare against targets.

Labor cost percentage shows how much of each dollar in sales goes to labor. To find it, divide total labor cost by total sales and multiply by 100.

3,150 ÷ 9,000 = 0.35, which is 35%. So the labor cost percentage is 35%.

If you check the other possibilities, a 30% rate would correspond to 2,700 in labor cost; 40% would be 3,600; 25% would be 2,250. They don’t match the given labor cost, so 35% is correct. This metric helps you gauge staffing efficiency and compare against targets.