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
