What Is the Formula Foodservice Managers Use to Calculate a Profit

question 30

Multiple Choice

What is the formula foodservice managers use to calculate a profit margin?

• A) Total sales ÷ Net income = Profit margin
• B) Prime cost ÷ Net income = Profit margin
• C) Net income ÷ Total sales = Profit margin
• D) Prime costs ÷ Total sales = Profit margin

---

Definitions:

Dominant Cultural

Pertaining to the prevailing cultural norms, values, and practices of the majority group within a society.

High Tolerance

The ability or capacity to endure a large amount of substance intake, stress, or differing viewpoints without adverse reactions.

Ambiguity

The quality of being open to more than one interpretation; inexactness.

Alcohol Consumption

The act of drinking beverages containing ethanol, which can range from casual drinking to alcohol abuse or dependency.