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Kitty [74]
3 years ago
11

A vendor sells hot dogs at $17.00 /piece. For every hot dog he spends $11.23 in the raw material. Additionally he spends $0.90 f

or packing each hotdog and monthly $46.00, $25.00, $13.00 as food truck rent, electricity and other expenses respectively. How much is the vendor contributing to covering his fixed costs or generating profits
Business
1 answer:
Gemiola [76]3 years ago
8 0

Answer: $4.87

Explanation:

The question is asking for the Contribution margin which is the amount left of the selling price after the variable costs have been deducted.

Contribution margin = Selling price - variable costs

= Selling price - Raw materials - packing costs

= 17 - 11.23 - 0.90

= $4.87

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