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Determine the contribution margin per sandwich

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Problem - Alice is planning to open up a sandwich shop. An estimate of her costs/revenues are as follows: average sales price per sandwich: $12.75; yearly rent: $12,000; monthly fixed utility bill: $800; average cost of ingredients per sandwich: $3.55; monthly labour bill (fixed): $10,500; miscellaneous fixed supplies: $1,000; misc. variable supplies: $0.60 per sandwich. Determine the contribution margin per sandwich?

Reference no: EM133031646

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