A common and legitimate criticism of the contribution margin approach to menu analysis is that it favors
Question:
A common and legitimate criticism of the contribution margin approach to menu analysis is that it favors
a. Higher priced menu items over lower priced items.
b. Lower priced menu items over higher priced items.
c. Higher food cost percentage items over lower cost percentage items.
d. Lower food cost percentage items over higher cost percentage items.
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Managerial Accounting for the Hospitality Industry
ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
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