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Question - Using the economics of 1 unit formula, what is the contribution margin for a slice of pizza based on the below information.
1 whole packet of cheese costs $7.50 Roughly 1/15 of the cheese in the packet is used to make one whole pizza.
1 whole container of pizza sauce costs $10.00 Roughly 1/25 of the sauce in the container is used to make one whole pizza.
1 whole packet of dough costs $6.00. Roughly 1/30 of the dough in the container is used to make the whole pizza.
One whole pizza is cut down into 8 slices, which each sell for $2.00.
What is the contribution margin for 1 slice (unit) of pizza?
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