Question

What is the food service term for the amount of money remaining from a sale after subtracting the sold itemâ s cost from its selling price? Check average Food cost percentage Contribution margin Cost of food sold

Answer 1

Answer:

Contributing margin.

Explanation:

Contributing margin is calculated by deducting the cost of producing a food item from its selling price. This represents the portuin of sales revenue that is not used up by cost.

It shows the profit a business eventually makes after considering its costs incurred.

This is an important consideration for businesses because it shows if a business venture is profitable and worth continuing. When the contributing margin is negative, it means that the business is running at a loss.