Quick answer: labor cost = hourly wage x hours x (1 + extra employer cost %). 17.50 x 320 hours is 5,600 a week; against 20,000 of weekly sales that is 28% labor cost.
Labor cost percentage
Labor cost percentage is labor cost divided by sales for the same period. With 5,600 of weekly wages and 20,000 of weekly sales, labor is 28% of sales. Target ranges vary a lot by industry, so compare yourself with your own past weeks first.
Know your headcount in full-time terms with the FTE calculator, and plan the hours with the employee schedule maker.
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Questions
How do I calculate labor cost percentage?
Divide total labor cost by total sales for the same period and multiply by 100.