What is the contribution margin

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Reference no: EM131814808

1) For a manufacturing company, selling price for an item is $506.00 per Unit, Variable cost is $340.00 per Unit, rent is $7,736.00 per month and insurance is $3000 per month. What is the contribution margin?

2) A vendor prepares 100.00 hotdogs every day and sells at $20.00/piece. For each hot dog, he spends $12.00 in the raw material. Additionally he spends $1.00 for packing each hotdog and monthly $50.00, $20.00, $10.00 as food truck rent, electricity and other expenses respectively. On a particular day in June it rained heavily so vendor was able to sell only 80.00 hot dogs. For finishing the stock he sold remaining hotdogs for $5.00/piece. Determine vendor’s profit for that day? Assume there are 30 days in the month.

3) For a table manufacturing company, selling price for a table is $20.00 per Unit, Variable cost is $9.00 per Unit, labor charge is $2.00 per Unit, rent is $787.00 per month and transportation is $10 per 10 tables. If 464.00 tables are sold in a month how much revenue company earns for that month?

Reference no: EM131814808

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