Choice Coffee has computed their ﬁxed costs to be $.20 for every cup of coffee they sell given an average daily sales level of 600 cups. They charge $1.65 per cup of coffee. The variable cost per
Cup is $.45. What is the contribution margin per cup of coffee sold?
A) $.65
B) $.90
C) $1.00
D) $1.20
E) $1.65

Question

Quizplus · Accepted Answer

The Answer of Choice Coffee has computed their ﬁxed costs to be $.20 for every cup of coffee they sell given an average daily sales level of 600 cups. They charge $1.65 per cup of coffee. The variable cost per
Cup is $.45. What is the contribution margin per cup of coffee sold?
A) $.65
B) $.90
C) $1.00
D) $1.20
E) $1.65

Choice Coffee Has Computed Their ﬁXed Costs to Be