The abbreviated equation S = FC + P / CR relates to Sales = Food cost + Profit / Contribution rate. Savings = Food cost + Part time labour / Conversion ratio. Sales = Fixed costs + Profit / Contribution rate. Sales = Fixed Cost + Profit / Conversion rate. If the average sales (S) per unit is $13.75 and the average variable cost (VC) is $7.20, what is the contribution margin?

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The contribution margin is a measure of the ability of a business to ... View the full answer