33. You determine the following information about a local bar:

Cost per Liquor quart

$4.48

Quart has 32 ounces

1-1/4 ounces per drink

Sales tax per bottle

$1.97

Total purchase of quarts$5,000

Determine the pouring cost percent.

Determine gross receipts and gross profit. What are other variables

to consider?

(32 oz per quart) / (1 1/4 ounces per drink) = 25.6 drinks per quart

(drinks per quart x retail cost per drink) - sales tax = sales per quart

25.6($1.1) - $1.97 = $26.19

Cost per quart / sales per quart = cost ratio

$4.48 / $26.18 = 17.1%

Cost / cost ratio - revenue

$5,000 / .171= $29,239.76

Gross receipts - cost of goods sold = gross profit

$29,239.76 - $5,000 = $ 24,239.76

Some other variables to consider can be spillage of drinks when making them and that the

measurements made by each bartender may not be exact.

How was the retail cost per drink calculated in this problem?