Liquor Cost Percentage Calculator

Formula

To calculate Liquor Cost Percentage:

\[ \text{LCP} = \frac{\text{TCA}}{\text{R}} \times 100 \]

Where:

$\text{LCP}$ is the Liquor Cost Percentage (%)
$\text{TCA}$ is the Total Cost of Alcohol ($)
$\text{R}$ is the Total Alcohol Revenue ($)

Liquor Cost Percentage

The liquor cost percentage is a metric used to determine the proportion of revenue spent on alcohol costs. It is an important measure for evaluating the cost-effectiveness and profitability of alcohol sales in a business. A lower liquor cost percentage indicates a higher proportion of revenue remaining after accounting for alcohol costs.

Example Calculation

Let's assume the following values:

Total Cost of Alcohol (TCA) = $500
Total Alcohol Revenue (R) = $2000

Using the formula:

\[ \text{LCP} = \frac{500}{2000} \times 100 = 25\% \]

The Liquor Cost Percentage (LCP) is 25%.