So,
All you have to do is find the total labor cost and put it over the revenue.
We have two workers each earning $8/hr. (lousy), and they work 40 hrs./week.
2 * $8 = $16/hr.
$16/hr. * 40 hrs. = $640
\(\frac{640}{2000}\)
Cross out zeros.
\(\frac{64}{200}\)
Simplify.
\(\frac{2^6}{2^35^2}\)
\(\frac{2^3}{5^2}\)
\(\frac{8}{25}\)
Convert the denominator to 100.
\(\frac{8}{25} * \frac{4}{4} = \frac{32}{100}\)
\(\frac{32}{100}\)
=
32%
The labor cost is 32% of the revenue.
