Leo Patrick Cabrigas HM-1E

Understanding the Profit and Loss Statement

Consider an example, all expenses and profits can be computed as percent by using the revenue figure,
P800,000, as the whole, with expenses and profit representing the parts as follows:

(The profit or loss is calculated, it is converted in the form of a percentage. It is used to express the amount of
profit or loss incurred in the form of a percentage. This helps in comparing two quantities. The formulas for
profit and loss percentage are given below:)
(Profit percentage(P%) = (Profit /Cost Price) × 100)

(Loss percentage(L%) = (Loss / Cost price) × 100)

Food and Beverage Cost/Revenue = Food and Beverage Cost %, or:

P 300,000/P 800,000 = 37.50%.

Labor Cost/Revenue = Labor Cost %, or:

P 350,000/P 800,000 = 43.75%.

Other Expense/Revenue = Other Expense %, or:

P 50,000/P 800,000 = 6.25%.

Total Expense/Revenue = Total Expense %, or:

P 700,000/P 800,000 = 87.50%.

Profit/Revenue = Profit %, or:

P 100,000/P 800,000 = 12.50%.

Profit and Loss Statement

Revenue P 400,000

__________________________________

Expenses

Food and Beverage Cost P300,000

Labor Cost P350,000

Other Expense P 50,000

_____________________________________________________________

Total Expense P 700,000

Profit P 100,000

Revenue P 800,000 Percentage(100%)

Food and Beverage Cost P 300,000 37.50%.

Labor Cost P 350,000 43.75%.
Other Expense P 50,000 6.25%.

Total Expense P 750,000 87.50%.

Profit P 100,000 12.50%.