Which product has the highest contribution margin in dollars

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Reference no: EM133525447

Case Study: Assume instead of one product (the Ripped Pig sandwich), Cat & Joe's Pig Rig served three products: the Ripped Pig sandwich, which sold for $12 and had variable costs of 40% of sales price; the Pork Taco, which sold for $9 and had variable costs of 35% of sales price, and the Mac and Cheese Pulled Pork, which sold for $12 and had variable costs of 50% of sales price.

Questions:

  • Calculate the contribution margin (in dollars) of each product individually (Ripped Pig sandwich, Pork Taco or Mac and Cheese Pulled Pork).
  • Which product has the highest contribution margin in dollars (NOT contribution margin ratio)?

 

Reference no: EM133525447

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