Question

A revenue manager has a target labor cost of 18% of revenue if the labor cost is $20,000 what Musta revenue be in order for the target labor cost to have been achieved

Answer 1

Let R stand for Revenue, and L stand for Labor cost... so L = 0.18 x R
To solve for R, divide both sides by .18...
R = L / .18
R = 20,000 / .18
R = $111,111
So Revenue has to be at least $111,111 to achieve the goal.