Question: A restaurant manager estimates his total labor cost for next month to be 35% of forecasted revenue. Employee benefits are estimated to be 20% of

A restaurant manager estimates his total labor cost for next month to be 35% of forecasted revenue. Employee benefits are estimated to be 20% of total labor costs. Management salaries for the month will be $12,250. The manager forecasts next month’s total revenue to be $175,000. What would be amount this manager will have available to pay for variable (hourly) staff costs next month?

a. $36,750

b. $24,500

c. $61,250

d. $35,000

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