Vitoro restaurant made a sale of One hundred thousand naira (N100,000). The amount spent on ingredient for preparing the meal was Twenty-five thousand naira (N25,000), members of staff were paid Forty thousand naira (N40,000) and other expenses such as rent and utility bills was Fifteen thousand naira (15,000).

Use this information to answer questions 4(a),(b) and (c).

(a) Identify the overhead cost and labour cost.

(b) Calculate net profit.

(c) Calculate the percentage net profit.

(a) The overhead cost is the sum of rent and utility bills, which is **N15,000**. The labour cost is the amount paid to the members of staff, which is **N40,000**.

(b) The total cost incurred by the restaurant is the sum of the cost of ingredients, labour cost, and overhead cost. Therefore, the total cost is **N25,000 + N40,000 + N15,000 = N80,000**. The net profit is the difference between the total sale and the total cost incurred. Therefore, the net profit is **N100,000 - N80,000 = N20,000**.

(c) To calculate the percentage net profit, we divide the net profit by the total sale and multiply by 100. Therefore, the percentage net profit is **(N20,000/N100,000) x 100 = 20%**.

(a) The overhead cost is the sum of rent and utility bills, which is **N15,000**. The labour cost is the amount paid to the members of staff, which is **N40,000**.

(b) The total cost incurred by the restaurant is the sum of the cost of ingredients, labour cost, and overhead cost. Therefore, the total cost is **N25,000 + N40,000 + N15,000 = N80,000**. The net profit is the difference between the total sale and the total cost incurred. Therefore, the net profit is **N100,000 - N80,000 = N20,000**.

(c) To calculate the percentage net profit, we divide the net profit by the total sale and multiply by 100. Therefore, the percentage net profit is **(N20,000/N100,000) x 100 = 20%**.