Total labor cost is $4,200 and total sales are $12,000. What is the labor cost percentage?

Total labor cost is $4,200 and total sales are $12,000. What is the labor cost percentage?

• A. 35%
• B. 30%
• C. 33.3%
• D. 40%

Answer: (A)

Labor cost percentage shows what portion of sales is spent on labor. To find it, divide total labor cost by total sales, then convert to a percent. 4,200 ÷ 12,000 = 0.35, which equals 35%. So for every dollar of sales, 35 cents goes to labor. The other options would correspond to different labor costs (e.g., 3,600 would be 30%, 4,000 about 33.3%, 4,800 would be 40%), but with the given numbers the correct percentage is 35%.

Labor cost percentage shows what portion of sales is spent on labor. To find it, divide total labor cost by total sales, then convert to a percent. 4,200 ÷ 12,000 = 0.35, which equals 35%. So for every dollar of sales, 35 cents goes to labor. The other options would correspond to different labor costs (e.g., 3,600 would be 30%, 4,000 about 33.3%, 4,800 would be 40%), but with the given numbers the correct percentage is 35%.