Respuesta :

Answer:

.03472

Step-by-step explanation:

take sell price $20. subtract cost of 11.32 which equals 8.68. then divide 8.68 by the sell price $20

The formula for contribution margin is the sales price of a product minus its variable costs. In other words, calculating the contribution margin determines the sales amount left over after adjusting for the variable costs of selling additional products.

Based on the cost of ingredients and the amount the braised ribs are sold for, your contribution margin is $8.68.

The Contribution margin the difference between the variable costs of a venture and its selling price:

= Selling price - Variable cost

The selling cost is $20 and the variable costs are $11.32.

Contribution margin is therefore:

= 20 - 11.32

= $8.68

In conclusion, your contribution margin is $8.68.

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