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...

Answer Details

(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%.