Assume that Bene Petit sells only family - sized meals and that the average price is $5.00 per serving. Variable manufacturing costs are $1.75 per serving for customer meals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00 per customer delivery (with an average order size of four meals or 16 servings in each delivery). Variable delivery expenses for donated meals are $200 per delivery, with an average of 1,000 donated meals or 4,000 servings in each delivery. Other variable selling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000. How much contribution margin is earned on each customer meal sold after covering the variable costs of the donated meal?

Assume that Bene Petit sells only family - sized meals and that the average price is $5.00 per serving. Variable manufacturing costs are $1.75 per serving for customer meals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00 per customer delivery (with an average order size of four meals or 16 servings in each delivery). Variable delivery expenses for donated meals are $200 per delivery, with an average of 1,000 donated meals or 4,000 servings in each delivery. Other variable selling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000. How much contribution margin is earned on each customer meal sold after covering the variable costs of the donated meal?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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