Enter the total cost of wages ($) and the total sales during the period ($) into the Wages to Sales Ratio Calculator. The calculator will evaluate and display the Wages to Sales Ratio.
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Wages to Sales Ratio Formula
The following formula is used to calculate the Wages to Sales Ratio.
W-S = TW / TS
- Where W-S is the Wages to Sales Ratio ($/$)
- TW is the total cost of wages ($)
- TS is the total sales during the period ($)
To calculate the wages to sales ratio, divide the total wages by the total sales.
How to Calculate Wages to Sales Ratio?
The following example problems outline how to calculate Wages to Sales Ratio.
Example Problem #1:
- First, determine the total cost of wages ($).
- The total cost of wages ($) is given as: 1500.
- Next, determine the total sales during the period ($).
- The total sales during the period ($) is provided as: 3000.
- Finally, calculate the Wages to Sales Ratio using the equation above:
W-S = TW / TS
The values given above are inserted into the equation below:
W-S =1500 / 3000 = .500 ($/$)
Example Problem #2:
For this problem, the variables needed are provided below:
total cost of wages ($) = 2000
total sales during the period ($) = 5000
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
W-S = TW / TS = ?
