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Your new business has 10,000 in monthly fixed expenses. You are selling sandwiches for an average price of $7 per sandwich. Each sandwich has a variable cost associated with production that costs an average of $3. What is your contribution margin?




$2,500


$3


$4


$7


$10,000

Respuesta :

abiolataiwo2015

If  each sandwich has a variable cost associated with production that costs an average of $3. Your contribution margin is $4.

Using this formula

Contribution margin=Selling price per unit-Variable cost per unit

Where:

Selling price per unit=$7

Variable cost per unit=$3

Let plug in the formula

Contribution margin=$7-$3

Contribution margin=$4

Inconclusion your contribution margin is $4.

Learn more here:

https://brainly.com/question/15015682

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