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Alex
4 years ago
13

You're now worried that the Veggie Burger may not be much of a profit-maker, so you decide to calculate its' Contribution Margin

. You know that it costs you $4.67 to serve that burger. The menu price is $6.95. What is the Contribution Margin for the Veggie Burger
Business
1 answer:
AysviL [449]4 years ago
5 0

Answer:

$2.28

Explanation:

You're now worried that the Veggie Burger may not be much of a profit-maker, so you decide to calculate its' Contribution Margin. You know that it costs you $4.67 to serve that burger. The menu price is $6.95. What is the Contribution Margin for the Veggie Burger

The contribution margin is the selling price- variable costs.

For veggie Burger,

selling price is $4.67

The variable cost is $6.95

Contribution margin is

= $6.95 - $4.67

=$2.28

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