1. Serrena owns a gourmet coffee shop. In Serrena's operation, payroll costs for hourly employees and salaried employees are calculated separately. Serrena recorded the revenue her operation generated last month as well as the amount she spent for hourly staff and for salaried managers. Calculate Serrena's last month labor cost percentages for her hourly staff and for her salaried employees, as well as her total payroll cost and total payroll cost percentage.

\begin{tabular}{|l|c|c|}
\hline & Payroll Last Month & Payroll Percent \\
\hline Revenue & \[tex]$135,000 & \\
\hline Cost of Hourly Staff & \$[/tex]29,500 & \\
\hline Cost of Salaried Managers & \$6,500 & \\
\hline Total Payroll & & \\
\hline
\end{tabular}



Answer :

Sure, let's go through the detailed solution step by step.

1. Calculate the Total Payroll Cost:

- Cost of Hourly Staff: \[tex]$29,500 - Cost of Salaried Managers: \$[/tex]6,500
- Total Payroll: This is the sum of the costs for the hourly staff and the salaried managers.
[tex]\[ \text{Total Payroll} = \$29,500 + \$6,500 = \$36,000 \][/tex]

2. Calculate the Labor Cost Percentage for Hourly Staff:

- To find this percentage, we take the cost of hourly staff and divide it by the total revenue, then multiply by 100 to convert it to a percentage.
[tex]\[ \text{Percentage for Hourly Staff} = \left( \frac{\text{Cost of Hourly Staff}}{\text{Revenue}} \right) \times 100 = \left( \frac{\$29,500}{\$135,000} \right) \times 100 \approx 21.85\% \][/tex]

3. Calculate the Labor Cost Percentage for Salaried Managers:

- Similarly, take the cost of salaried managers and divide it by the total revenue, then multiply by 100.
[tex]\[ \text{Percentage for Salaried Managers} = \left( \frac{\text{Cost of Salaried Managers}}{\text{Revenue}} \right) \times 100 = \left( \frac{\$6,500}{\$135,000} \right) \times 100 \approx 4.81\% \][/tex]

4. Calculate the Total Payroll Cost Percentage:

- Total payroll cost percentage is found by dividing the total payroll by the total revenue, then multiplying by 100.
[tex]\[ \text{Total Payroll Percentage} = \left( \frac{\text{Total Payroll}}{\text{Revenue}} \right) \times 100 = \left( \frac{\$36,000}{\$135,000} \right) \times 100 \approx 26.67\% \][/tex]

Now, summarizing the results:

[tex]\[ \begin{array}{|l|c|c|} \hline & \text{Payroll Last Month} & \text{Payroll Percent} \\ \hline \text{Revenue} & \$135,000 & \\ \hline \text{Cost of Hourly Staff} & \$29,500 & 21.85\% \\ \hline \text{Cost of Salaried Managers} & \$6,500 & 4.81\% \\ \hline \text{Total Payroll} & \$36,000 & 26.67\% \\ \hline \end{array} \][/tex]

Final Results:
- Total Payroll Cost: \$36,000
- Labor Cost Percentage for Hourly Staff: 21.85%
- Labor Cost Percentage for Salaried Managers: 4.81%
- Total Payroll Cost Percentage: 26.67%